Trust Services of America, Inc. Toni Brotman Wald v. United States

TROTT, Circuit Judge:

The United States appeals the district court’s judgment that the United States is not entitled to any setoffs against the es tate tax refund due Trust Services of America, Inc. and Toni Brotman Wald (collectively “Trust Services”) in their capacity as cotrustees of the trust established by Alix Brotman Hodosh’s will. The district court based its judgment on the alternative rationales that the United States was es-topped from asserting affirmative defenses in the nature of setoff, and that both setoff claims lacked merit. We reverse in part, affirm in part, and remand so…