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refund check. Accordingly, by notice dated March 22, 2002,
respondent determined a deficiency in petitioners’ income tax for
1999 in the amount of $577.
Discussion6
The parties agree that petitioners’ correct tax liability
for 1999 is $4,256, which is the amount reported by petitioners
as their tax liability on their 1999 Form 1040A. Nevertheless,
petitioners contend that they should not be liable for any
deficiency. At trial, petitioner James Gill expressed his view
as follows:
I’m very frustrated. I feel that I have been
harassed. I have tried over the years to do my own
taxes correctly and I did do them correctly in this
case, Your Honor.
If the Government makes a mistake, my feelings are
they ought to write it off. That was their –- I don’t
have the money, I have more debt problems; I have, you
know, a need for the money. The situation has changed
since 1999 and when I filed this return.
Essentially, petitioners seek to estop respondent from pursuing
the present action against them.
Although the doctrine of equitable estoppel is applicable
against the Commissioner, it is well established that the
doctrine is applied against the Commissioner with the utmost
caution and restraint. Schuster v. Commissioner, 312 F.2d 311,
6 We need not decide whether sec. 7491, concerning burden
of proof, applies to the present case because the facts are not
in dispute and the issue is one of law. See Higbee v.
Commissioner, 116 T.C. 438 (2001).
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