Terence M. Bennett - Page 12

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            that respondent was, in fact, attempting to obtain information                              
            for her second criminal investigation of his 1988 taxable year                              
            under the guise of a civil investigation.                                                   
                  Section 6501(a) generally requires the assessment of income                           
            taxes within 3 years after the filing of the taxpayer's return.                             
            However, the taxpayer and Secretary may consent in writing to                               
            extend the period of limitations for an assessment.  See sec.                               
            6501(c)(4).9  Petitioner maintains that respondent should be                                
            estopped from relying upon his consent to extend the period of                              
            limitations in this case.  It is well settled that the doctrine                             
            of estoppel should be applied against the Government "with utmost                           
            caution and restraint."  Estate of Emerson v. Commissioner, 67                              
            T.C. 612, 617 (1977).  Courts have set forth several conditions                             
            which must be satisfied before estoppel will be applied.  See,                              
            e.g., Lignos v. United States, 439 F.2d 1365, 1367-1368 (2d Cir.                            
            1971); Kronish v. Commissioner, 90 T.C. 684, 695 & n.10 (1988);                             
            Boulez v. Commissioner, 76 T.C. 209, 214-215 (1981), affd. 810                              


                  9Sec. 6501(c)(4) provides:                                                            
                        (4) Extension by agreement.--Where, before the                                  
                  expiration of the time prescribed in this section for                                 
                  the assessment of any tax imposed by this title, * * *                                
                  both the Secretary and the taxpayer have consented in                                 
                  writing to its assessment after such time, the tax may                                
                  be assessed at any time prior to the expiration of the                                
                  period agreed upon.  The period so agreed upon may be                                 
                  extended by subsequent agreements in writing made                                     
                  before the expiration of the period previously agreed                                 
                  upon.                                                                                 




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