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Each taxable year stands alone, and the Commissioner may
challenge in a succeeding year what was condoned or agreed to in
a former year. Auto. Club of Mich. v. Commissioner, 353 U.S. 180
(1957). A settlement agreement is binding only with respect to
the years specified by the agreement. Goldman v. Commissioner,
39 F.3d 402, 405-406 (2d Cir. 1994), affg. T.C. Memo. 1993-480.
Petitioners have failed to substantiate that they are entitled to
claim any capital loss deduction for the taxable year 1991 or a
capital loss in excess of $271 for taxable year 1992.7
In the notice of deficiency, respondent determined that
petitioners failed to report interest and dividend income on
their 1992 joint return of $3,748 and $35, respectively.
Gross income includes all interest and dividends received by a
taxpayer during the taxable year. Sec. 61(a)(4).
Petitioners argue that they reported $754 of interest on the
1992 income tax return filed by Frank Black, Inc. However, all
interest at issue appears on Forms 1099 issued to Mr. Black in
his individual name and Social Security number. At trial, Mr.
Black indicated that he had assigned that income to the
corporation.8 The assignment of income doctrine prevents
7Respondent allowed a capital loss deduction of $271 for
taxable year 1992.
8We note that Frank Black, Inc., had no checking or other
accounts in 1992 and does not appear to have carried on any
operations.
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