Brian and Tina Nicklaus - Page 11

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          facts and legal principles remain unchanged, id. at 599-600; and            
          (6) there are no special circumstances that would warrant making            
          an exception to the normal rules of issue preclusion, Montana v.            
          United States, supra at 162; Meier v. Commissioner, supra at                
          291-292.                                                                    
               These requirements are met in this case.  First, petitioners           
          disputed respondent’s assessment procedures for 1993-96 in the              
          prior case and in this case.  Thus, identical matters are at                
          issue in the prior case and in the instant case.  Second, our               
          decision in the prior case is final.  Third, the parties in this            
          case are the parties in the prior case.  Fourth, during the prior           
          trial, petitioners and respondent actually and necessarily                  
          litigated respondent’s assessment procedures for 1993-96 and                
          whether respondent’s proposed collection action for those years             
          was appropriate.  The resolution of those matters was essential             
          to the decision in the first suit.  Fifth, the controlling facts            
          and legal principles have not changed.  Meier v. Commissioner,              
          supra at 291.  Sixth, petitioners do not contend, and we do not             
          find, that special circumstances are present that would warrant             
          not applying the normal rules of issue preclusion.  See Montana             
          v. United States, supra; Meier v. Commissioner, supra at 291-292.           
          Thus, petitioners are collaterally estopped from alleging                   
          irregularities in the assessment of their Federal income taxes              
          for 1993-96.                                                                






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