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The doctrine of equitable estoppel is not applicable unless
the party relying on it establishes all of the following elements
at a minimum: (1) A false representation or wrongful, misleading
silence by the party against whom estoppel is invoked; (2) an
error in a statement of fact and not an opinion or statement of
law; (3) ignorance of the facts; (4) adverse effects of acts or
statements of the person against whom an estoppel is claimed; and
(5) detriment suffered by the party claiming estoppel because of
his or her adversary’s false representation or wrongful,
misleading silence. Norfolk S. Corp. v. Commissioner, 104 T.C.
13, 60 (1995), affd. 140 F.3d 240 (4th Cir. 1998); Estate of
Emerson v. Commissioner, 67 T.C. 612, 617-618 (1977); Megibow v.
Commissioner, T.C. Memo. 2004-41; see also Lignos v. United
States, 439 F.2d 1365, 1368 (2d Cir. 1971).
The IRS employee made a mistake of law by including only
$1,532 as the taxable portion of the $15,322.69 distribution,
instead of the entire distribution of $15,322.69. Equitable
estoppel does not bar respondent from correcting a mistake of law
unless petitioner would suffer an unconscionable injury because
of his reliance on respondent’s mistake. Under these
circumstances, it is not unconscionable to require petitioner to
pay the tax due on income he has admitted receiving. Petitioner
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