- 10 -
Midwestern loan in their basis in stock. Petitioners contend
that, had the IRS raised an issue regarding basis in those years,
they would have corrected any error before 1993 and 1994 when
their amount of flow-through loss was much greater.
Failure to raise an issue in one tax year does not preclude
or affect the correct determination of that issue in another
year. See, e.g., Tollefsen v. Commissioner, 52 T.C. 671, 681
(1969), affd. 431 F.2d 511 (2d Cir. 1970). Respondent’s failure
to correct the basis allocation by petitioners in 1991 and 1992
does not prevent the correct treatment of that issue for 1993 and
1994. See Dickman v. Commissioner, 465 U.S. 330 (1984); Dixon v.
United States, 381 U.S. 68, 72-75 (1965); Automobile Club of
Michigan v. Commissioner, 353 U.S. 180, 183-184 (1957); Schuster
v. Commissioner, 800 F.2d 672, 676 (7th Cir. 1986), affg. 84 T.C.
764 (1985).
We have carefully considered all remaining arguments made by
petitioners for a result contrary to those expressed herein, and,
to the extent not discussed above, they are irrelevant, without
merit, or not supported by the record.
Petitioners apparently believe that this case was processed
as a small tax case under section 7463 because of the form of
their petition filed June 1, 1998. However, the combined amounts
placed in dispute for 1993 exceeded the $10,000 limitation in
effect when the petition was filed, prior to the increase to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011