Vincent and Clotilde Farrell, Jr. - Page 18

                                       - 18 -                                         
          equitable powers.  Commissioner v. McCoy, 484 U.S. 3, 7 (1987).             
          However, while we cannot expand our jurisdiction through                    
          equitable principles, we can apply them in the disposition of               
          cases that are within our jurisdiction.  See Woods v.                       
          Commissioner, 92 T.C. 776, 784-787 (1989), and cases cited                  
          therein.  The redetermination of a deficiency, addition to tax,             
          or penalty determined by respondent is within our jurisdiction.             
          Secs. 6213(a), 6665, 6671.  Accordingly, in deciding this issue,            
          we are not expanding on our statutory jurisdiction.                         
               "[T]he doctrine of equitable estoppel is applied against the           
          Government `with the utmost caution and restraint.'"  Kronish v.            
          Commissioner, 90 T.C. 684, 695 (1988) (quoting Boulez v.                    
          Commissioner, 76 T.C. 209, 214-215 (1981), affd. 810 F.2d 209               
          (D.C. Cir. 1987)).  There are several conditions that must be               
          satisfied before the doctrine is applied:  (1) A false                      
          representation or wrongful, misleading silence by the party                 
          against whom the opposing party seeks to invoke the doctrine; (2)           
          error in a statement of fact and not in an opinion or statement             
          of law; (3) ignorance of the facts; (4) reasonable reliance on              
          the acts or statements of the one against whom estoppel is                  
          claimed; and (5) adverse effects of the acts or statements of the           
          one against whom estoppel is claimed.  See Kronish v.                       
          Commissioner, supra at 695, and cases cited therein.                        
               Petitioners assert that they were adversely affected in this           
          case by respondent's failure promptly to notify them of the                 




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011