- 40 - different from other non-Article III tribunals by virtue of this Court’s “exclusively judicial role”. Id. at 892. F. This Court Has Equitable Powers That Its Predecessors Did Not Following Freytag v. Commissioner, supra, many Courts of Appeals now agree that this Court has equitable powers that this Court’s predecessors did not have and that this Court’s powers are harmonious with the powers of a District Court. In Estate of Branson v. Commissioner, 264 F.3d at 908, for example, the Court of Appeals for the Ninth Circuit stated that this Court’s exercise of judicial powers includes the authority to apply the full range of equitable principles generally granted to courts that possess judicial powers. Even if the Tax Court does not have far-reaching general equitable powers [a statement that presumably was made in reply to the Supreme Court’s dictum in Commissioner v. McCoy, 484 U.S. 3, 7 (1987) that this Court “lacks general equitable powers”5], it can apply equitable principles 5 That dictum, when taken in context, is not remarkable. Nor is it inconsistent with my view that this Court has district courtlike equitable powers. The context of this dictum indicates that the Supreme Court was merely noting the well-settled rule that no court of law may ignore the express intent of Congress as to the imposition of interest and penalties. See Commissioner v. McCoy, 484 U.S. 3, 7 (1987); see also Flight Attendants Against UAL Offset v. Commissioner, 165 F.3d 572, 578 (7th Cir. 1999) (“In context, the Supreme Court’s dictum in Commissioner v. McCoy, 484 U.S. 3, 7, 98 L. Ed. 2d 2, 108 S. Ct. 217 (1987) (per curiam), that the Tax Court lacks “general equitable powers” means only that the Tax Court is not empowered to override statutory limits on its power by forgiving interest and penalties that Congress has imposed for nonpayment of taxes--but then no court is, unless the imposition would be unconstitutional.”). In fact, the Court made no mention of McCoy when it decided Freytag (continued...)Page: Previous 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Next
Last modified: May 25, 2011