- 3 - Held, further: Before MI’s income tax deficiency may be offset by the hospital tax in question, MI must eliminate or back out the deduction for such hospital tax that it claimed on its tax return for 1998. Robert E. Dallman, Vincent J. Beres, and Robert J. Misey, Jr., for petitioners. Christa A. Gruber, J. Paul Knap, and Michael Calabrese, for respondent. SUPPLEMENTAL OPINION MARVEL, Judge: This matter is before the Court on petitioners’ objection to respondent’s proposed Rule 1551 computations submitted in response to our holdings in Menard, Inc. v. Commissioner, T.C. Memo. 2004-207 (Menard I), and Menard, Inc. v. Commissioner, T.C. Memo. 2005-3 (Menard II). As discussed in greater detail below, in Menard I we held that petitioners are liable for income tax deficiencies for the taxable year ended (TYE) 1998. In Menard II we denied petitioners’ motion for reconsideration. The issue we must decide is whether, under the equitable recoupment doctrine, petitioners are entitled to an offset against their income tax liabilities for TYE 1998 equal to the 1Unless otherwise indicated, all Rule references are to the Tax Court Rules of Practice and Procedure, and all chapter, subtitle, and section references are to the Internal Revenue Code.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008