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2. Estoppel Relating to Prior Audit
Petitioners contend respondent is estopped from challenging
the Charlsons’ carryover of the credit, because the Charlsons’
Federal income tax return for 1989 was audited and the ITC
carryover was not challenged. Respondent is not bound, however,
to allow the same treatment in a subsequent year, even where
similar erroneously reported items were unchallenged in an audit
of a prior year. See Union Equity Cooperative Exch. v.
Commissioner, 58 T.C. 397, 408 (1972), affd. 481 F.2d 812 (10th
Cir. 1973); Fidelity Commercial Co. v. Commissioner, 55 T.C. 483,
490 (1970), affd. per order (4th Cir., Sept. 1, 1971).
Accordingly, respondent was not estopped from disallowing the
carryover of the ITC claimed by the Charlsons in 1994, 1995, and
1996.
Contentions we have not addressed are moot, irrelevant, or
meritless.
To reflect the foregoing,
Decisions will be entered
under Rule 155.
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Last modified: May 25, 2011