- 23 -
Petitioners contend that Mrs. King’s testimony establishes that
they did not deduct depreciation to which they were entitled on
the South Oates building from 1990-96. We disagree.
The mitigation provisions allow redress of specified tax
inequities despite the statute of limitations or similar barriers
such as the doctrine of res judicata. TLI, Inc. v. United
States, 100 F.3d 424, 427-428 (5th Cir. 1996). See generally
Bittker & Lokken, Federal Taxation of Income, Estates & Gifts,
par. 113.9 (2d ed. 1992); 2 Mertens, Law of Federal Income Tax,
sec. 14.07 (2006 rev.).
The mitigation provisions apply (with exceptions not
applicable here) if: (1) The Commissioner has made a final
determination, as defined in section 1313(a); (2) the
determination falls within one of the specified “circumstances of
adjustment” or “doubling-up” situations described in section
1312; (3) the party against whom the mitigation provisions are
invoked or a related party must have maintained, with respect to
the treatment of the item in question for the determination year,
a position inconsistent with the treatment of the item in another
year of the same or related taxpayer, and assessment of tax for
that year is barred by the generally applicable period of
limitation or by some other rule of law, sec. 1311(b); and (4)
the party who seeks to invoke the mitigation provisions acted
timely thereunder and in the proper manner to make a corrective
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011