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computation for entry of decision because we lack jurisdiction
over hospital taxes. According to respondent, applying equitable
recoupment in this case “would allow petitioners to slip through
a back door to challenge a tax they could not directly petition
the Court to review.”
Respondent does not dispute the amount by which petitioners
contend they overpaid their hospital taxes, nor does respondent
dispute that the elements necessary for an equitable recoupment
claim are present in this case.5
Neither Menards nor Mr. Menard filed a claim for a refund of
the hospital taxes that they overpaid. The period of
limitations for filing a refund claim has now expired with
respect to both petitioners.
We have not yet entered decisions in these cases, and
consequently no decision has become final within the meaning of
section 7481.
Discussion
These cases present an issue of first impression regarding
the scope of our authority to apply the doctrine of equitable
5Respondent did not raise any specific challenge to Mr.
Menard’s computations. Respondent does assert, however, that
assuming equitable recoupment is available in this case,
petitioner Menard, Inc., erred in computing the amount of its
income tax deficiency, after accounting for the offset of
hospital tax. We shall discuss this issue in greater detail
below.
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