Reginald and Ronda Charlson - Page 6




                                        - 6 -                                         
          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.                          














Page:  Previous  1  2  3  4  5  6  

Last modified: May 25, 2011