Ralph M. and Rosemary L. Conlon - Page 10

                                        - 9 -                                         
          v. Commissioner, T.C. Memo. 1990-6 (citing 1 Restatement, Agency            
          2d, sec. 26 (1957)).  The scope of an agent’s authority is                  
          evaluated in an objective manner, taking into consideration what            
          a reasonable person in the agent’s position would conclude that             
          the principal intended, regardless of whether that is what the              
          principal actually intended.  See id.                                       
               In order to bind the principal, the agent must either have             
          actual or apparent authority, or the principal must ratify the              
          agent’s acts.  See Trans World Travel v. Commissioner, T.C. Memo.           
          2001-6.  Authority is examined taking into account all the                  
          circumstances, including the relationship of the parties, the               
          common business practices, the nature of the subject matter, and            
          the facts of which the agent has notice concerning objects the              
          principal desires to accomplish.  See id. (citing Restatement,              
          supra at sec. 34).                                                          

               The extent of an agent’s authority is a factual question to            
          be decided on the basis of all the facts and circumstances                  
          revealed by the record.  Adams v. Commissioner, 85 T.C. 359, 369-           
          373 (1985); Kraasch v. Commissioner, 70 T.C. 623, 627-629 (1978);           
          1 Restatement, Agency 2d, sec. 34 (1957).                                   

               This Court has held that a representative, acting under an             
          actual or apparent grant of authority from the taxpayer, has the            
          requisite authority to petition this Court in the name of the               
          taxpayer.  See Kraasch v. Commissioner, supra (taxpayer’s agent             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011