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hearing, petitioner alleged: “I was absent for three years due
to illness”. In his petition to this Court for review of
respondent’s determination that collection should proceed,
petitioner alleged: “Taxpayer was mentally ill from 1993 to 1996
and unable to make rational decisions. The service [sic] is
aware of the illness.”
In assessing petitioner’s mental competence at the various
relevant points in time, we look to State law for guidance, as
Federal courts generally do when, as here, there is no
established body of Federal common law in point. See, e.g.,
Harrell v. United States, 13 F.3d 232, 235 (7th Cir. 1993);
Powers v. U.S. Postal Serv., 671 F.2d 1041, 1045 (7th Cir. 1982);
Furnish v. Commissioner, 262 F.2d 727, 733-734 (9th Cir. 1958),
affg. in part and remanding in part Funk v. Commissioner, 29 T.C.
279 (1957); see also Berger v. Commissioner, T.C. Memo. 1996-76.
Cognitive capacity is the standard generally used for
determining ability to enter into an enforceable contract,6 both
5(...continued)
defense that must be pleaded or it is waived, Robinson v.
Commissioner, 117 T.C. 308, 312 (2001), and petitioner did not so
plead.
Even if we were to assume for purposes of argument that
estoppel does not apply, petitioner remains unable to prevail
because of our holding that he was competent to sign the Forms
4549-CG.
6We apply contract principles in interpreting, applying, and
determining the enforceability of waiver documents. Mecom v.
(continued...)
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