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judgment has been properly made and supported by the moving
party, the opposing party may not rest upon mere allegations or
denials contained in that party’s pleadings but must by
affidavits or otherwise set forth specific facts showing that
there is a genuine issue for trial. Rule 121(d).
B. Standard for Collateral Estoppel
Collateral estoppel exists for “the dual purpose of
protecting litigants from the burden of relitigating an identical
issue and of promoting judicial economy by preventing unnecessary
or redundant litigation.” Meier v. Commissioner, 91 T.C. 273,
282 (1988); see also Montana v. United States, 440 U.S. 147, 153-
154 (1979); Parklane Hosiery Co. v. Shore, 439 U.S. 322, 326
(1979). In general, the doctrine of collateral estoppel, also
referred to as issue preclusion, forecloses relitigation of
issues actually litigated and necessarily decided in a prior
suit. Parklane Hosiery Co. v. Shore, supra at 326 n.5; Meier v.
Commissioner, supra at 282; Peck v. Commissioner, 90 T.C. 162,
166 (1988), affd. 904 F.2d 525 (9th Cir. 1990).
This Court, expanding upon three factors identified by the
Supreme Court in Montana v. United States, supra at 155, has set
forth five prerequisites necessary for the application in factual
contexts of collateral estoppel:
(1) The issue in the second suit must be identical in
all respects with the one decided in the first suit.
(2) There must be a final judgment rendered by a court
of competent jurisdiction.
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