Walter James Sims, Jr. & Sonia Gail Tolliver-Sims - Page 6




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          assuming that there in fact was a discharge of indebtedness, the            
          only identifiable event fixing the time of the loss with any                
          certainty is the credit card company’s cessation of debt                    
          collection activities in 1996, 3 years following petitioner’s               
          last payment.  See Cozzi v. Commissioner, supra.  There is                  
          nothing in the record to indicate any event between 1996 and 1998           
          which would have altered the status of the account as collectible           
          or uncollectible.  Based on the record before us, we find that              
          petitioners did not have discharge of indebtedness income during            
          1998.                                                                       
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
               To reflect the foregoing,                                              
                                             Decision will be entered                 
                                        for petitioner.                               






















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