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The Duty of Consistency
The "duty of consistency", sometimes referred to as quasi-
estoppel, is an equitable doctrine that Federal courts
historically have applied in appropriate cases to prevent unfair
tax gamesmanship. Beltzer v. United States, 495 F.2d 211, 212
(8th Cir. 1974); Cluck v. Commissioner, 105 T.C. 324 (1995);
LeFever v. Commissioner, 103 T.C. 525 (1994), affd. 100 F.3d 778
(10th Cir. 1996). The duty of consistency doctrine “is based on
the theory that the taxpayer owes the Commissioner the duty to be
consistent in the tax treatment of items and will not be
permitted to benefit from the taxpayer’s own prior error or
omission.” Cluck v. Commissioner, supra at 331. It prevents a
taxpayer from taking one position on one tax return and a
contrary position on a subsequent return after the limitations
period has run for the earlier year. See id. If the duty of
consistency applies, a taxpayer who is gaining Federal tax
benefits on the basis of a representation is estopped from taking
a contrary return position in order to avoid taxes. See id.
This case is appealable to the Court of Appeals for the
Eighth Circuit. In Beltzer v. United States, supra at 212, the
Court of Appeals for the Eighth Circuit held that a taxpayer is
placed under a duty of consistency when:
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Last modified: May 25, 2011