Estate of Mueller v. Commissioner
United States Tax Court
R determined a deficiency in P's estate tax liability. P claims that it is entitled to equitable recoupment of previously paid income tax, the refund of which is barred by the statute of limitations. In Estate of Mueller v. Commissioner, 101 T.C. 551 (1993), we held that we have jurisdiction to consider claims of equitable recoupment. As a result of our valuation of stock includable in the estate, see Estate of Mueller v. Commissioner, T.C.
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R determined a deficiency in P's estate tax liability. P claims that it is entitled to equitable recoupment of previously paid income tax, the refund of which is barred by the statute of limitations. In Estate of Mueller v. Commissioner, 101 T.C. 551 (1993), we held that we have jurisdiction to consider claims of equitable recoupment. As a result of our valuation of stock includable in the estate, see Estate of Mueller v. Commissioner, T.C. Memo. 1992-284, it is now apparent that there is no deficiency in estate tax; rather, P is entitled to recover an overpayment of estate tax, regardless of…
1DissentBeghe, J.
I believe this case satisfies all requirements for equitable recoupment. In particular, petitioner’s overpayment posture, which results from a completely unrelated, fortuitous issue, should not prevent recoupment.
The majority has created a new rule about offensive use of equitable recoupment that unnecessarily perpetuates unjust enrichment of the Government, thwarts the fundamental purposes of equitable recoupment, and seems likely to prevent equitable recoupment in other cases where justice may even more clearly require it.
I have no disagreement with the facts recited by the majority…
2Cases cited102 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- Federal Deposit Insurance v. MeyerSupreme Court of the United States · 1994
- Montana v. United StatesSupreme Court of the United States · 1979
- Commissioner v. SunnenSupreme Court of the United States · 1948
- United States v. Western Pacific RailroadSupreme Court of the United States · 1956
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