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application form was on file at that time and, by implication,
was approved. Petitioners conclude that respondent cannot now
deny the exemption.
It appears that petitioners are suggesting an estoppel
argument based on their reliance on the no-change decision in
1994. However, it is well established that each tax year stands
on its own. See Rose v. Commissioner, 55 T.C. 28, 32 (1970).
Furthermore, errors of law in prior years do not estop the
Commissioner from correcting those errors in later years. Auto.
Club of Mich. v. Commissioner, 353 U.S. 180, 183 (1957).
In view of the apparent failure of Mr. Vigil to file Form
4361 timely, acquiescence by agents of respondent in accepting
his claim of exemption in 1994 was an error of law. Such a
mistake does not prevent correction of the error as to 2001. Id.
at 184. Section 1402(e) imposes time limitations, and the
Commissioner’s agents have neither the authority nor the power to
grant an exemption not complying with the statute. Robertson v.
Commissioner, T.C. Memo. 1983-32, affd. without published opinion
742 F.2d 1446 (2d Cir. 1983).
We conclude that Mr. Vigil is not exempt because he did not
satisfy the requirements of section 1402(e)(1). Respondent’s
determination that petitioners are liable for the tax imposed by
section 1401 on Mr. Vigil’s 2001 self-employment income is
sustained.
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