- 3 - petitioner not to report it. Petitioner testified that he knew that this was improper, but he felt that the agent was doing him a favor. Petitioner contends that respondent is estopped from asserting a deficiency or an addition to tax based on the inclusion of $10,365 in death benefits, $38 in dividends, and $12 of interest that petitioner failed to report in his gross income. Petitioner’s theory is that, since respondent assisted petitioner in filing his return by providing him with the third-party information available to respondent as of November 1998, if there was taxable income that petitioner failed to report, it is respondent’s fault, and, therefore, respondent should be precluded from asserting a deficiency or addition to tax. We disagree. The traditional elements of estoppel are: (1) A misrepresentation or omission of a material fact by another party; (2) a reasonable reliance on that misrepresentation or omission; and (3) a detriment to the other party. See United States v. Asmar, 827 F.2d 907, 912 (3d Cir. 1987). Assuming that the Internal Revenue Service Center employee gave petitioner incorrect advice (which has a decidedly hollow ring), petitioner may not claim estoppel against respondent based on that advice. Even if we assume that misinformation was given and that petitioner relied on that information, petitionerPage: Previous 1 2 3 4 Next
Last modified: May 25, 2011