- 6 -
T.C. Memo. 1990-30; Willingham v. United States, 289 F.2d 283,
287-288 (5th Cir. 1961); Simon v. Commissioner, 248 F.2d 869, 877
(8th Cir. 1957), affg. on this issue and revg. and remanding
U.S. Packing Co. v. Commissioner, T.C. Memo. 1955-194; Nick v.
Dunlap, 185 F.2d 674 (5th Cir. 1950); Rictor v. Commissioner,
26 T.C. 913, 914-915 (1956); Auerbach Shoe Co. v. Commissioner,
21 T.C. 191, 196 (1953), affd. 216 F.2d 693 (1st Cir. 1954);
Blanton Coal Co. v. Commissioner, T.C. Memo. 1984-397; Pusser
v. Commissioner, a Memorandum Opinion of this Court dated
Dec. 7, 1951, affd. per curiam 206 F.2d 68 (4th Cir. 1953);
see also United States v. Keltner, 675 F.2d 602, 605 (4th Cir.
1982). Respondent's reliance on this line of cases for a similar
result here, however, is misplaced. The ability to carry back an
NOL depends on the happenings in a taxable year after the taxable
year in which the underpayment is due to fraud, and the
subsequent year may be as far away as 3 years after the year of
the fraudulent underpayment. The principle of C.V.L. Corp. v.
Commissioner, supra, reflects the fact that each taxable year is
a separate year for income tax purposes, and that a taxpayer may
not reduce his or her liability for fraudulent conduct in one
year by virtue of unforeseen or fortuitous circumstances that
happen to occur in a later year. See Paccon, Inc. v.
Commissioner, 45 T.C. 392 (1966).
In the case of the Federal estate tax, however, the same
rationale does not apply. The Federal estate tax is not
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