Barry I. Fredericks - Page 9

                                        - 9 -                                         

               Petitioner has also failed to prove the fourth and fifth               
          elements of equitable estoppel.  Petitioner claims that he signed           
          the three Forms 872 in reliance on respondent's statements that             
          the Form 872-A had not been received by the Newark District                 
          Office.  However, petitioner testified that he read the Form                
          872-A before signing it, including the methods described therein            
          for revoking the form.  If petitioner intended to limit his                 
          extension of the assessment period, he could have done so by                
          executing a Form 872-T at any time.  See Grunwald v.                        
          Commissioner, 86 T.C. 85, 88-89 (1986).  In light of the clear              
          and unambiguous terms set out in the Form 872-A providing for               
          unilateral termination of the extension, we do not find that the            
          acts of reliance claimed by petitioner involve the level of                 
          detriment necessary to bring this case within the category of               
          those "rare instances" where respondent should be estopped.  See            
          Estate of Emerson v. Commissioner, 67 T.C. at 618.  "Such                   
          [equitable estoppel] claims cannot be sustained in the face of              
          the taxpayers' own failure to act as required by the Form 872-A             
          procedure."  Stenclik v. Commissioner, supra at 28.                         
          Consequently, respondent is not estopped from relying on the Form           
          872-A signed by petitioner.                                                 
               To reflect the foregoing,                                              
                                             Decision will be entered                 
                                        under Rule 155.                               





Page:  Previous  1  2  3  4  5  6  7  8  9  

Last modified: May 25, 2011