George Kiourtsis - Page 11

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            2.    Equitable Estoppel                                                                      
                  Petitioner contends further that equitable estoppel prevents                            
            the Commissioner from requiring petitioner to include the New                                 
            York City 1992 pension payments in his 1992 gross income because                              
            he had received a "closing letter" from the IRS accepting as                                  
            filed his 1990 return which had excluded such 1990 payments from                              
            gross income.  The traditional elements of equitable estoppel                                 
            have been stated to be:  "(1) conduct constituting a                                          
            representation of a material fact; (2) actual or imputed                                      
            knowledge of such fact by the representor; (3) ignorance of the                               
            fact by the representee; (4) actual or imputed expectation by the                             
            representor that the representee will act in reliance upon the                                
            representation; (5) actual reliance thereon; and (6) detriment on                             
            the part of the representee."  Graff v. Commissioner, 74 T.C.                                 
            743, 761 (1980), affd. 673 F.2d 784 (5th Cir. 1982).  And the                                 
            Court in Graff pointed out that "Although the doctrine of                                     
            equitable estoppel is not inapplicable to the Federal Government,                             
            it has been applied to such Government with caution and only                                  
            where justice and fair play require it.  Federal Crop Ins. Corp.                              
            v. Merrill, 332 U.S. 380 (1947); Goldstein v. United States, 227                              
            F.2d 1, 4 (8th Cir. 1955)."                                                                   
                  The doctrine of equitable estoppel does not bar the                                     
            Commissioner from correcting a mistake of law, Automobile Club v.                             
            Commissioner, 353 U.S. 180, 183 (1957), absent unfair conduct on                              

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