Yvonne E. Thurner - Page 12

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          by every matter that was or could have been offered and received            
          to sustain or defeat the claim.  Commissioner v. Sunnen, 333 U.S.           
          591, 597 (1948); see Gustafson v. Commissioner, 97 T.C. 85, 91              
          (1991); Wooten v. Commissioner, T.C. Memo. 2003-113.  The                   
          doctrine of res judicata “serves to promote judicial economy and            
          the repose of disputes” by avoiding repetitious lawsuits.                   
          Gustafson v. Commissioner, supra at 91.  Because Federal income             
          taxes are determined on an annual basis, each year is a separate            
          cause of action, and res judicata is applied to bar subsequent              
          proceedings involving the same tax year.  Commissioner v. Sunnen,           
          supra at 597-598; Calcutt v. Commissioner, 91 T.C. 14, 21 (1988).           
               Section 6015(g)(2) modifies the common law doctrine of res             
          judicata with regard to claims for relief from joint and several            
          liability.  Section 6015(g)(2)3 provides in pertinent part:                 
               SEC. 6015(g).  Credits and Refunds.--                                  
                           *    *    *    *    *    *    *                            
                    (2) Res judicata.--In the case of any election                    
               under subsection (b) or (c), if a decision of a court                  
               in any prior proceeding for the same taxable year has                  
               become final, such decision shall be conclusive except                 
               with respect to the qualification of the individual for                
               relief which was not an issue in such proceeding.  The                 
               exception contained in the preceding sentence shall not                

               3  Sec. 313(a)(2)(A) of the Consolidated Appropriations Act            
          of 2001, Pub. L. 106-554, 114 Stat. 2763A-640 (2000),                       
          redesignated former subsec. (g) as subsec. (h) and inserted after           
          subsec. (f) a new subsec. (g) (as quoted above).  For a more                
          detailed discussion of the legislative history of sec.                      
          6015(g)(2), see Vetrano v. Commissioner, 116 T.C. 272, 280                  
          (2001).                                                                     





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