- 5 - offset against the stipulated 1981 and 1982 income tax debts an $84,590 overpayment of estate tax. This claim for equitable recoupment is the subject of the instant litigation. Discussion I. Contentions of the Parties Petitioners contend both that their situation satisfies the factual prerequisites for equitable recoupment relief and that this Court has the legal authority to afford such relief. They base their averments primarily on our recent decisions in Estate of Branson v. Commissioner, 113 T.C. 6 (1999), Estate of Bartels v. Commissioner, 106 T.C. 430 (1996), and Estate of Mueller v. Commissioner, 101 T.C. 551 (1993). Conversely, respondent asserts that this Court lacks authority to recognize an equitable recoupment defense. Respondent argues that cases such as Estate of Branson v. Commissioner, supra, and Estate of Bartels v. Commissioner, supra, were incorrectly decided and ignore a plain reading of statutory and case law. In the alternative, respondent maintains that Continental Equities, Inc. v. Commissioner, 551 F.2d 74 (5th Cir. 1977), affg. in part and revg. in part T.C. Memo. 1974-189, is controlling law in the Eleventh Circuit and thereby settles the issues in this case, in a manner consistent with respondent’s position, pursuant to the rule established in Golsen v.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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