- 11 - did not acquiesce to the credits claimed for 1990, 1991, and 1992; and (3) Bentley Court was compelled to change its initial representation or claim of credits due to the criminal prosecution against Lewis. We conclude that Bentley Court’s approach and perspective regarding the duty of consistency doctrine are inapposite. As to the first prong, Bentley Court claimed credits and reported the existence of qualified basis on its tax returns, as follows: Year Credit Yearend qualified basis 1990 $28,508 $223,770 1991 699,780 8,372,263 1992 859,543 11,537,221 The second prong concerns the Commissioner’s acquiescence or reliance on the above-referenced facts reported by Bentley Court. On that point, Bentley Court contends that respondent did not acquiesce or rely, as reflected by respondent’s criminal prosecution of Lewis with respect to the concealment of information or records. That criminal prosecution, however, does not relieve Bentley Court of the duty of consistency.5 In point of 5 The rationale underlying the duty of consistency has been described, as follows: In adjusting values the Commissioner in effect represents the interests of all other taxpayers who must bear what the particular taxpayer unjustly escapes. It is no more right to allow a party to blow hot and cold as suits his interests in tax matters than (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011