- 5 - 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).Page: Previous 1 2 3 4 5 6 7 8 Next
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