- 13 - was held that the general partner, who signed the consent, had authority to bind the partnership. Second, interpreting the partnership agreement in that case, we held that the signing partner was not prohibited from extending the period for assessment for the partnership. However, the U.S. Court of Appeals for the Fifth Circuit reversed our decision in Medical. The Court of Appeals disagreed with our interpretation of the partnership agreement. Based on its interpretation, the Court of Appeals found that the general partner who signed the consent, under State law, was not authorized to bind the partnership. Finally, the Court of Appeals addressed an estoppel argument raised at the appellate level. The Court of Appeals stated that In order for equitable estoppel to apply, the government must show that * * * [the partnership] was aware of the facts, that * * * [the partnership] intended the IRS to act on its representation that * * * [the signing partner] was the TMP, that the government did not know of the facts, and that the government reasonably relied on * * * [the partnership's] representations to its substantial detriment. * * * [Medical & Business Facilities, Ltd. v. Commissioner, 60 F.3d at 212.] The Court of Appeals also explained that the regulations, which provided the circumstances under which a TMP is designated and made known to the Commissioner, were promulgated March 5, 1987. See sec. 301.6231(a)(7)-1T, Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6791 (Mar. 5, 1987). That regulationPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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