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v. West, 201 F.3d 990, 994 (7th Cir. 2000) (citing Edgewater
Hosp., Inc. v. Bowen, supra at 1138-1139). Affirmative
misconduct is more than mere negligence. It requires an
affirmative act to misrepresent or mislead. See Mendrala v.
Crown Mortgage Co., 955 F.2d 1132, 1141-1142 (7th Cir. 1992).
Petitioner argues that, on the basis of respondent’s
conduct, respondent should be equitably estopped from collecting
the unpaid 1986 and 1987 tax liabilities. Petitioner cites the
following conduct: (1) Respondent filed the RFTL to release the
Federal tax lien relating to the 1986 tax liability,
(2) respondent failed to refile the Federal tax lien notice
relating to the 1987 tax liability, and (3) respondent failed to
take any collection action for over 3 years after the RFTL was
filed. Petitioner asserts that this conduct caused petitioner to
believe that he no longer had any tax liability for 1986 and
1987. Believing that he had no tax liability gave petitioner a
false sense of security and caused him to incur more debt than he
otherwise would have incurred.
Petitioner’s equitable estoppel argument fails for several
reasons. First, petitioner contends that he mistakenly thought
that the RFTL extinguished not only the tax lien but the tax
liability as well. Petitioner misunderstood the effect of the
RFTL. This mistake was not induced by respondent. See Miller v.
Commissioner, 23 T.C. 565, 569 (1954) (if the taxpayers in fact
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