Theodore Halper, Incompetent, Valerie Halper and Wayne Halper, Co-Plenary Guardians - Page 10

                                       - 10 -                                         

          precluded by the application of estoppel or a similar doctrine              
          from attacking the validity of the forms they signed, even if               
          they later prove they were incompetent when they signed them.               
          See Hollman v. Commissioner, 38 T.C. 251, 260 (1962); Dale v.               
          Commissioner, T.C. Memo. 1982-654.  However, those cases (and               
          others cited by respondent) differ from the one before us.  They            
          involve consents signed by the taxpayer, not by a third party               
          purporting to act on behalf of the taxpayer.  More importantly,             
          in those cases there was no evidence that the Commissioner had              
          either actual notice or reason to know of the taxpayer's                    
               Apparent authority, not otherwise terminated, ends when the            
          third person has notice of the termination of the agent's                   
          authority.  1 Restatement, Agency 2d, sec. 125 (1957).  A third             
          person has notice when he knows, has reason to know, should know,           
          or has been given a notification of the occurrence of an event              
          from which, if reasonable, he would draw the inference that the             
          principal does not consent to have the agent so act for him, that           
          the agent does not consent so to act for the principal, or that             
          the transaction has become impossible of execution.  1                      
          Restatement, Agency 2d, sec. 135 (1957).  Revocation of the prior           
          power of attorney need not be expressed; it can be implied from             
          words and conduct.  Whiting v. Marine Midland Bank-Western, 80              
          Misc. 2d 871, 365 N.Y.S.2d 628, 643 (Sup. Ct. 1975); see also               

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011