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extend the SPL, because the POA under which B acted was
revoked by P’s incapacity and R had actual knowledge of the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 1986
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