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collaterally estopped from collecting additional
deficiencies in income taxes from the petitioner for
the taxable years 1993 and 1994.
If that is the sum of petitioner’s argument, then
the dispute as to that issue is concluded.
Respondent observes that, unfortunately, that does not
appear to be the ultimate aim of petitioner’s argument.
Respondent notes that petitioner filed a Form 1139 claim
with the IRS, applying for a refund of allegedly overpaid 1993
and 1994 Federal income taxes, based upon claimed losses in the
taxable year 1995. The factual or legal grounds for the alleged
loss were not indicated on the Form 1139.
Subsequently, on July 1, 1998, during LGA’s bankruptcy
proceeding, respondent issued the notice of deficiency for the
taxable years 1993 and 1994, which notice is the basis for this
case pending before the Court. Petitioner argues that
petitioner’s claim for overpayments (not yet proved) is to be
applied, not against its actual tax liability for the taxable
years 1993 and 1994, but only against the de minimis claim which
respondent was allowed to collect in the bankruptcy proceeding.
Respondent submits that such an argument, as advanced by
petitioner, is wholly contrary to established law.
Respondent also disputes petitioner’s contention, inferred
from petitioner’s arguments that in substantively consolidating
LGA’s and Sunrise’s bankruptcy proceedings, the Bankruptcy Court
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Last modified: May 25, 2011