Nicklo v. Commissioner

Summary

The United States Tax Court held that the petitioner could not enforce a settlement offered to his partners in a tax shelter venture because the applicable limitations period for his 1979 tax year had expired. The court also rejected the petitioner's request for interest abatement, concluding that it lacked jurisdiction to grant such relief and that no qualifying IRS error had been shown. Decision was entered for the Commissioner.

Holdings

1. A limited or conditional waiver of the statute of limitations is invalid when executed after expiration of the original limitations period; petitioner therefore could not compel the Commissioner to consider his proposed reopening of 1979.
2. Petitioner was not entitled to enforce the partners' settlement or obtain equivalent relief because he failed to prove his actual cash investment or establish a legal basis for deductions, and the circumstances provided no legal or equitable basis for relief.
3. The Tax Court generally lacks jurisdiction to abate interest under section 6404(e), and petitioner was not entitled to interest abatement in any event because he failed to show IRS error concerning the 1980 or 1981 deficiencies.

Questions Presented

1. Whether petitioner could enforce a conditional settlement based on the settlement offered to his partners in the tax-shelter venture.
2. Whether petitioner could obtain relief by offering to waive the statute of limitations for 1979 after the limitations period had expired.
3. Whether the Tax Court had jurisdiction to abate interest under section 6404(e)(1).

Disposition

other