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the second of these points was not decided in Allnutt I.
However, the first point was decided: we decided that he had
taxable income in the 1981-86 years. Thus, he did not have
losses in those years. That decision is now final. Res judicata
bars petitioner from relitigating that issue here. We conclude
that the third requirement is met, and that petitioner is barred
by res judicata from arguing that he has losses in 1981-86 which
he can carry forward to the years in issue.
3. Section 6214(b)
Petitioner contends that section 6214(b)5 permits him to
deduct net operating losses for 1981-86 in this case because it
requires us to consider facts from other years to correctly
redetermine a deficiency. We disagree.
Section 6214(b) provides that we shall consider facts from
other years as may be necessary to redetermine correctly
deficiencies in the years before us. However, petitioner’s 1980-
86 tax years were at issue in Allnutt I, and res judicata bars
5 Sec. 6214(b) provides:
SEC. 6214(b). Jurisdiction Over Other Years and
Quarters.--The Tax Court in redetermining a deficiency
of income tax for any taxable year or of gift tax for
any calendar year or calendar quarter shall consider
such facts with relation to the taxes for other years
or calendar quarters as may be necessary correctly to
redetermine the amount of such deficiency, but in so
doing shall have no jurisdiction to determine whether
or not the tax for any other year or calendar quarter
has been overpaid or underpaid.
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