David and Gail Vigil - Page 12




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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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