John and Louisa A. Hodel - Page 22

                                       - 22 -22                                           
          equitable tolling must show, at a minimum, that the IRS did                 
          something that reasonably induced him or her to believe the                 
          period of limitations was being tolled or had been extended.  See           
          First Alabama Bank v. United States, 981 F.2d 1226, 1228 (11th              
          Cir. 1993).  Although there may be additional requirements to               
          prove equitable estoppel, the Court need not explore those                  
          requirements because petitioners have not shown that the IRS did            
          or said anything which reasonably could have induced them to                
          believe the time period for filing a claim for refund was being             
          tolled or had been extended.                                                
               In sum, we hold that petitioners are not entitled to a                 
          refund of the 1986 overpayment attributable to the carryback of             
          the 1989 NOL.  This result may appear inequitable in light of the           
          fact that respondent clearly concedes that an overpayment exists            
          for taxable year 1986.  However, the general principles of equity           
          may not override statutory requirements for the timely filing of            
          tax refund claims.  Republic Petroleum Corp. v. United States,              
          613 F.2d 518 (5th Cir. 1980).  Furthermore, the Court notes that            
          with reference to the equities of this case, petitioners created            
          this situation by their failure to file timely returns for the              
          years at issue.                                                             











Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011