- 14 - required the designation of a TMP at the time the return is filed or, subsequently, by a statement filed at the service center at which the partnership return was filed. The Court of Appeals then reasoned that the Commissioner would be on actual notice of the identity of the TMP after March 5, 1987, and would not be in reasonable reliance of a partner’s portrayal as TMP. Based on that reasoning and the fact that several consents were executed by the general partner as TMP, both before and after the regulation was promulgated or enacted, the Court of Appeals in Medical held that estoppel did not apply. Because only one of the consents was executed prior to the promulgation of the regulation, the court held that “the Commissioner’s estoppel argument applies to only one of the consents”. Medical & Business Facilities, Ltd. v. Commissioner, 60 F.3d at 212. The facts of this case are generally similar to those in Medical. One significant difference that distinguishes this case from Medical is that, in this case, only one consent was executed on March 4, 1986, which was prior to the March 5, 1987, promulgation of the regulation. The consent used in this case is of the open-ended variety, in that it continues in effect until certain action(s) are taken by the parties. The facts in this case show that the partnership was aware of the circumstances. Costello executed documents as the TMP of the partnership. Walsh, the promoter and manager of the partnership, specifically requested Costello to execute thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011