Estate of Harry Orenstein - Page 15




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          Court authority, and the decision by the Court of Appeals for the           
          Eleventh Circuit in Bokum v. Commissioner, 992 F.2d 1136 (11th              
          Cir. 1993), affg. T.C. Memo. 1990-21.                                       
               With respect to lack of similarity, the facts in Continental           
          Equities, Inc. v. Commissioner, supra, would not appear to                  
          present a scenario for potential application of equitable                   
          recoupment in the sense in which the doctrine has been defined              
          and used in our recent opinions.  The failure or inability of the           
          four related corporations to claim correlative deductions for               
          interest as a result of a section 482 adjustment to the income of           
          the taxpayer, as in Continental Equities, Inc. v. Commissioner,             
          supra, is of a different genre than the type of inconsistent                
          treatment presented in cases such as Estate of Branson v.                   
          Commissioner, 113 T.C. 6 (1999), Estate of Bartels v.                       
          Commissioner, 106 T.C. 430 (1996), and Estate of Mueller v.                 
          Commissioner, 101 T.C. 551 (1993).                                          
               As regards the ensuing time and developments, more than 2              
          decades have passed since the 1977 decision in Continental                  
          Equities, Inc. v. Commissioner, 551 F.2d 74 (5th Cir. 1977).  In            
          that interval, the concept of Tax Court jurisdiction has been               
          substantially refined. Concerning equitable recoupment in                   
          particular, the opinion by the Supreme Court in United States v.            
          Dalm, 494 U.S. 596 (1990), which served as a catalyst for our own           
          reevaluation of our position, was issued only in 1990.                      






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