- 12 - that Elwood's basis in the Grapevine property was $263,625, which is one-fourth of the value which the appraisal attached to the Estate's Federal estate tax return placed on the Grapevine property as of the date of Martha Cluck's death. Petitioner argues that the duty of consistency is inapplicable in this case and that, under all the facts and circumstances of this case, she has established that the Grapevine property had a fair market value of $2,500,000 on the date of Martha Cluck's death, and therefore Elwood had a basis of $625,000 when he sold his interest in the Grapevine property. The "duty of consistency", sometimes referred to as quasi- estoppel, applies in this Court. E.g., LeFever v. Commissioner, 103 T.C. 525, 541 (1994); Unvert v. Commissioner, 72 T.C. 807 (1979), affd. 656 F.2d 483 (9th Cir. 1981); Mayfair Minerals, Inc. v. Commissioner, 56 T.C. 82 (1971), affd. 456 F.2d 622 (5th Cir. 1972). The duty of consistency is based on the theory that the taxpayer owes the Commissioner the duty to be consistent in the tax treatment of items and will not be permitted to benefit from the taxpayer's own prior error or omission. LeFever v. Commissioner, supra. The duty of consistency doctrine prevents a taxpayer from taking one position one year and a contrary position in a later year after the limitations period has run for the first year. Id. at 541-542. A taxpayer gaining governmental benefits on the basis of a representation or an asserted positionPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011