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do not prevent the application of equitable recoupment in this
case.
6. Other Equitable Considerations
Respondent raised arguments that application of equitable
recoupment to petitioner was blocked by other considerations:
(1) Lack of clean hands, largely because of considerations having
to do with trial tactics that are essentially irrelevant; and (2)
lack of diligence or laches, because the Administration Trust had
more than 4 months following issuance of the estate tax statutory
notice in which it could have filed a timely protective claim for
an income tax refund. On brief, however, respondent has
essentially conceded these issues and admitted that, where the
proper circumstances for the application of equitable recoupment
are present, such equitable considerations won't prevent its
application. All that remains in respondent’s briefs of the
original arguments about other equitable factors are trace
references to their factual bases and what appears to be an
argument in the alternative: “if the Court believes that other
factors should be taken into account,” then respondent suggests
we take into account the Administration Trust’s lack of diligence
and failure to provide some necessary information during
discovery and at and after trial.
Petitioner argues in detail against respondent’s specific
charges, but only after initially arguing that respondent’s
concession that such equitable considerations shouldn't be taken
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