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created by conflicting Court of Appeals opinions and to provide
simplification benefits to both taxpayers and the Commissioner.
S. Rept. 109-336, supra at 97; see Staff of Joint Comm. on
Taxation, Technical Explanation of H.R. 4, The Pension Protection
Act of 2006, at 203 (J. Comm. Print 2006).
Respondent acknowledges that section 6214(b) grants the
Court authority to apply the doctrine of equitable recoupment in
appropriate cases. Nevertheless, respondent asserts that we may
not apply the doctrine in this case because our authority is
limited to taxes over which we have deficiency or overpayment
jurisdiction; i.e., income, estate, and gift taxes and excise
taxes imposed under chapters 41, 42, 43, and 44. In support of
his position, respondent attempts to draw parallels between the
first and second sentences of section 6214(b). Specifically,
while the first sentence of section 6214(b) permits us to
consider facts with relation to other taxable years and calendar
quarters in determining the correct amounts of the deficiencies
for the taxable years properly before us, the provision expressly
bars us from exercising jurisdiction to determine whether the tax
for those other taxable years or calendar quarters has been
overpaid or underpaid. As respondent sees it, just as the first
sentence of section 6214(b) limits our jurisdiction, the second
sentence of section 6214(b), which grants us authority to apply
the doctrine of equitable recoupment, should be narrowly
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