Estate of Gordon H. Bartels, Deceased, Sally A. Jouris and Thomas G. Bartels, Executors, and Estate of Violet J. Bartels, Deceased, Sally A. Jouris and Thomas G. Bartels, Executors - Page 6

                                        - 6 -                                         


          parties have framed their respective motions solely in terms of             
          the jurisdiction of this Court, petitioners arguing that we have            
          such jurisdiction and respondent arguing that we do not.4                   
               The jurisdictional status of equitable recoupment in this              
          Court has had a long history, which we have recently reviewed               
          with painstaking care in Estate of Mueller v. Commissioner, 101             
          T.C. 551 (1993) (Court reviewed).  We see no need to reiterate              
          that history.  Rather, we turn directly to the statutory                    
          provision upon which respondent relies, section 6214(b), which              
          provides as follows:                                                        
                    (b)  Jurisdiction Over Other Years and Quarters.--                
               The Tax Court in redetermining a deficiency of income                  
               tax for any taxable year or of gift tax for any                        
               calendar year or calendar quarter shall consider such                  
               facts with relation to the taxes for other years or                    
               calendar quarters as may be necessary correctly to                     
               redetermine the amount of such deficiency, but in so                   
               doing shall have no jurisdiction to determine whether                  
               or not the tax for any other year or calendar quarter                  
               has been overpaid or underpaid.                                        

          4  Respondent has raised no question in respect of the                      
          requirements of the "same transaction" concept upon which the               
          doctrine of equitable recoupment rests presumably because, aside            
          from the question of the jurisdiction of this Court, she has                
          taken the position that equitable recoupment is available under             
          the circumstances of this case in a ruling that she does not seek           
          to disavow herein.  Rev. Rul. 71-56, 1971-1 C.B. 404; see O'Brien           
          v. United States, 766 F.2d 1038, 1047-1051 (7th Cir. 1985);                 
          compare United States v. Bowcut, 287 F.2d 654 (9th Cir. 1961),              
          and United States v. Herring, 240 F.2d 225 (4th Cir. 1957), with            
          Wilmington Trust Co. v. United States, 221 Ct. Cl. 686, 610 F.2d            
          703 (1979); see also Andrews, "Modern-Day Equitable Recoupment              
          and the 'Two Tax Effect': Avoidance of the Statutes of Limitation           
          in Federal Tax Controversies," 28 Ariz. L. Rev. 595 (1986).                 





Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011