Gary H. and L. Marianne Bell - Page 10

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          deduction issue.  Trapp v. United States, 177 F.2d 1, 5 (10th               
          Cir. 1949); Riter v. Commissioner, 3 T.C. 301, 305 (1944).  The             
          U.S. Court of Appeals for the Tenth Circuit in Trapp explained              
          the effect of a decision document entered in a prior year by the            
          Tax Court, without a trial or receiving evidence, as follows:               
               A judgment, not predicated upon stipulated facts, or                   
               upon findings of fact, or upon a determination on the                  
               merits, but merely to carry out a compromise agreement                 
               of the parties, fails to constitute an effective                       
               judicial determination of any litigated right.                         
               Fruehauf Trailer Co. v. Gilmore, 10 Cir., 167 F.2d 324.                
               And a decision of that kind rendered by the Tax Court                  
               will not support a plea of estoppel in a case of this                  
               nature involving liability for income tax for a                        
               different year.  Blaffer v. Commissioner, 5 Cir., 134                  
               F.2d 389; Hartford-Empire Co. v. Commissioner, 2 Cir.,                 
               137 F.2d 540, certiorari denied, 320 U.S. 787, 64 S.Ct.                
               196, 88 L.Ed. 473; Riter v. Commissioner, 3 T.C. 301.                  
               [Trapp v. United States, supra at 5.]                                  
               Therefore, we hold that collateral estoppel does not apply             
          here.                                                                       
               To reflect the foregoing and concessions made by the                   
          parties,                                                                    


                                             Decision will be entered                 
                                        under Rule 155.                               













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