Kandiah and Nalini Jeyapalan - Page 10




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          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                





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