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The taxpayers petitioned the Tax Court for relief asserting the equitable recoupment doctrine. The Tax Court (Judge Cohen) found the taxpayers’ inability to use the NOLs to reduce tax liabilities was not the result of the inequitable application of inconsistent theories of taxation contemplated by the equitable recoupment doctrine, and ...


The doctrine of equitable recoupment does not apply. THE LAW. From Internal Revenue Code Section 6214(b): Provides that the Tax Court may apply the doctrine of equitable recoupment to the same extent that it is available in civil tax cases before the District Courts and the U.S. Court of Federal Claims.


An amendment to IRC § 6214(b) included in the Pension Protection Act of 2006 empowers the Tax Court to apply equitable recoupment to offset overpayments of hospital insurance taxes (the Medicare portion of FICA) against income tax deficiencies, according to the court’s ruling in Menard Inc. v. Commissioner . Although


Equitable recoupment doctrine allows a taxpayer to set off previously overpaid taxes due, even though the taxpayer is time-barred from claiming refund on the previous taxes. This doctrine also allows the government to set off those taxes that has not been collected from a taxpayer against the current claim for a refund, although the government ...


Tax Court Expands and Clarifies Equitable Recoupment Jurisdiction. The Estate of Gordon Bartels recently found itself in a common situation. There had been a long-standing income tax audit of Gordon Bartels's 1981 and 1982 tax years, and that audit eventually found its way into the U.S. Tax Court.


The Tax Court held that a group of lawyers who changed their firm entity type from a limited liability partnership (LLP) to a professional corporation (PC) were entitled, under the doctrine of equitable recoupment, to apply an overpayment of employment taxes made by the LLP for a quarter to an ...


Ninth Circuit Permits Equitable Recoupment for Late Refund Claim. (Parker Tax Publishing October 8, 2014) Taxpayer was not prohibited from seeking equitable recoupment due to untimely refund claim; Tax Court's denial of equitable recoupment was found to be erroneous.


The Tax Court held that where it has original jurisdiction to redetermine a deficiency, it also may apply the doctrine of equitable recoupment, even if it does not have jurisdiction over the type of tax at issue. The equitable recoupment doctrine is a judicially created doctrine that in certain ...


The Tax Court allowed a law firm to apply the equitable recoupment doctrine to an employment tax deposit that was erroneously applied to a related entity. In March 2006, after being notified by the IRS that it had no record of ever receiving a Form 941, Employer's Quarterly Federal Tax Return, for ...


equitable recoupment under these circumstances would therefore be offensive rather than defensive in posture. This type of affirmative collection of tax does not square with the purposes behind the equitable recoupment doctrine. See Mueller, 101 T.C. at 552 (“[P]arty asserting equitable recoupment may not affirmatively collect the time-barred