Stoddard v United States

District Court's Opinion Denying Government's Motion For Summary Judgment in Tax Refund Case


In this income tax refund case where the IRS lost most of the taxpayer's files, the district judge refused to adopt the Magistrate's Report & Recommendation on two of three issues in which he would have granted the Government's motion, finding there was sufficient evidence creating a material question of fact holding

(a) for the 1980 tax year there was a question of fact about which, among several, investment tax credits (only one of which could have been a TEFRA partnership item), if any, had been carried back from tax year 1983 and that was relevant in deciding whether to apply the extended TEFRA statute of limitations (26 USC § 6229(a)) or the general limitations period (26 USC § 6501(a));

(b) for the 1984 tax year, the court adopted the Magistrate's recommendation to deny summary judgment due to the lack of any evidence showing the assessment for that year was for a TEFRA partnership item; and

(c) for the tax years involving the "penalty," i.e., addition to tax, set forth in 26 USC § 6654, for failing to pay sufficient estimated income taxes, the court found there was a material question of fact as to whether the taxpayer's failure to pay the exact estimated tax due to inability to obtain the necessary information from third parties or to avail himself of the statute's safe harbor provision.

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Reference Info:Decision | Federal, 6th Circuit, Michigan | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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