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The Supreme Court has recently stated in dictum that the
United States Tax Court lacks "general equitable powers". See
Commissioner v. McCoy, 484 U.S. 3, 7 (1987) (per curiam). When
taken in context, this statement is not remarkable. Nor is it
inconsistent with the view of this Court as to our ability to
exercise District Courtlike equitable powers. The context of the
Supreme Court's statement in McCoy indicates clearly that the
Court was merely applying the well-settled rule that no court of
law may ignore the express intent of Congress as to the
imposition of interest and penalties. See id.; see also Flight
Attendants Against UAL Offset v. Commissioner, 165 F.3d 572, 578
(7th Cir. 1999) ("In context, the Supreme Court's dictum in
Commissioner v. McCoy, 484 U.S. 3, 7, 98 L. Ed. 2d 2, 108 S. Ct.
217 (1987) (per curiam), that the Tax Court lacks 'general
equitable powers' means only that the Tax Court is not empowered
to override statutory limits on its power by forgiving interest
and penalties that Congress has imposed for nonpayment of
taxes--but then no court is, unless the imposition would be
unconstitutional."). In fact, the Court made no mention of McCoy
when it decided Freytag 4 years later.
In sum, Congress, through the 1969 Act, elevated the status
of this Court to a court of law, and the Supreme Court in Freytag
held that Congress' action was constitutional. As a Federal
court of law, this Court naturally possesses the inherent powers
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