- 12 - so that payments for insurance of the warranty risk should be deemed to have occurred on the first day of the taxable year for all such payments, regardless of when the payments were actually made. Discussion I. Matters Properly Raised As a preliminary matter, we must first decide which issues have been properly raised in these cases. In addition to the proper period for amortizing insurance expense, which was challenged in respondent’s determination and was the basis on which petitioners assigned error to that determination in their petitions, petitioners now argue, for the first time on brief, that the EWA proceeds that were remitted to Western General are not income to petitioners, on the basis of the “claim of right” doctrine and income attribution principles. Should petitioners prevail with respect to these contentions, they maintain that they are entitled to refunds for overpayments in the years at issue. Respondent objects to our consideration of petitioners’ claims that the amounts paid to Western General are not income to them, on the grounds that respondent did not receive “fair warning” of petitioners’ intention to raise this issue. We believe the inclusion of the amounts paid to Western General in petitioners’ income is not an issue properly before us for two reasons. First, petitioners fully conceded this issuePage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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