8 deficiencies assessed for the tax years 1982 and 1983 should be offset by the alleged overpayment in 1984. We do not agree. Equitable recoupment may apply in limited circumstances to overcome the bar of the statute of limitations "to prevent inequitable windfalls to either taxpayers or the Government that would otherwise result from inconsistent tax treatment of a single transaction, item, or event affecting the same taxpayer". Estate of Mueller v. Commissioner, 101 T.C. 551, 552 (1993). In United States v. Dalm, 494 U.S. 596, 608 (1990), the Supreme Court stated: our decisions in Bull and Stone stand only for the proposition that a party litigating a tax claim in a timely proceeding may, in the proceeding, seek recoupment of a related, and inconsistent, but now time-barred tax claim relating to the same transaction. In both cases, there was no question but that the courts in which the refund actions were brought had jurisdiction. To date, we have not allowed equitable recoupment to be the sole basis for jurisdiction. As petitioners have conceded, we do not have jurisdiction over the computational assessments in this proceeding. Accordingly, the doctrine of equitable recoupment does not apply. In the alternative, petitioners argue that the mitigation provisions, sections 1311 through 1314, apply in these circumstances. Petitioners contend that the settlement agreement reached with respect to the 1982 and 1983 taxable years of Barrister Series 112 is a determination within the meaning of the mitigation provisions. Petitioners further argue that the disallowance of the investment credits claimed in 1982 and 1983Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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