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a final distribution of funds in December 1999. Respondent filed
several proofs of claim with the bankruptcy court to protect
respondent’s rights in that bankruptcy action and also pursued
petitioners’ other assets to satisfy their tax liability.
Accordingly, we hold that the instant case is
distinguishable on its facts from Barlow’s, Inc., and that
respondent did not exercise dominion and control over the account
receivable.
Petitioners contend that we have jurisdiction over their
1970 and 1971 Federal income tax years. The notice of
determination was issued for petitioners’ 1971 tax year. Since
petitioners’ notice of determination relates only to 1971, we may
consider only that year and not 1970 and 1972. See Moorhous v.
Commissioner, 116 T.C. 263, 270-271 (2001).
Petitioners contend that the central issue in the instant
case, whether the August 15, 1978, notice of levy issued to MMI
satisfied petitioners’ liability, was decided by the bankruptcy
court in DeHart v. United States, 50 Bankr. 685 (Bankr. M.D. Pa.
1985), and that the principles of res judicata bind us to the
decision in that case.
Res judicata applies to prevent the “repetitious suits
involving the same cause of action.” Commissioner v. Sunnen, 333
U.S. 591, 597 (1948). The elements of res judicata are:
Identity of the parties, prior judgment by a court of competent
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