T.C. Memo. 2000-150
UNITED STATES TAX COURT
ESTATE OF HARRY ORENSTEIN, DECEASED, SUSAN CARRANO AND ARTHUR
ORENSTEIN, PERSONAL REPRESENTATIVES AND
ESTATE OF LORA ORENSTEIN, DECEASED, SUSAN CARRANO AND ARTHUR
ORENSTEIN, PERSONAL REPRESENTATIVES, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket Nos. 25687-85, 4930-88. Filed April 26, 2000.
R issued notices of deficiency to H and W
determining Federal income tax liabilities for their
1981 and 1982 taxable years. H thereafter filed
petitions for redetermination on behalf of himself and
W’s estate. Following H’s subsequent death, his estate
filed a Federal estate tax return which did not reflect
a deduction for the still-pending income tax
liabilities. Because a refund of the resulting estate
tax overpayment is now time-barred, Ps seek to have a
corresponding amount offset against the income tax
liabilities pursuant to an equitable recoupment
defense.
Held: Ps are entitled, under the doctrine of
equitable recoupment, to offset against their Federal
income tax liabilities an overpayment of estate tax,
the claim for which is barred by the statute of
limitations. Estate of Branson v. Commissioner, 113
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011