T.C. Memo. 1997-58 UNITED STATES TAX COURT THEODORE HALPER, INCOMPETENT, VALERIE HALPER AND WAYNE HALPER, CO-PLENARY GUARDIANS, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 23378-94. Filed February 3, 1997. P signed a power of attorney (POA) in 1988 naming B as his representative. In April 1991, P was totally incapacitated by a stroke. B signed a Form 872 on Sept. 23, 1991, extending the statutory period of limitations (SPL) for tax years 1985 and 1986, with a letter to R describing the effects of P’s stroke. On Jan. 28, 1992, a Florida court found P legally incapacitated and named co-plenary guardians, neither of which was B. In a letter dated May 20, 1992, B advised R that P was not competent to authorize agreement to settlement, and that B thus could not sign a Form 870. However, on Aug. 27, 1992, B nevertheless did sign another Form 872 for 1985 and 1986 on behalf of P. On Sept. 19, 1994, a notice of deficiency for 1984, 1985, and 1986 was mailed to P. Held: The Form 872 signed in 1992 is ineffective to extend the SPL, because the POA under which B acted was revoked by P’s incapacity and R had actual knowledge of the incapacity. Held, further, the SPL for 1984, 1985, and 1986Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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