United States First Circuit

Summary judgment was properly granted to defendant on plaintiffs' claim for refund of a failure-to-pay penalty imposed on them by the Internal Revenue Service, where: 1) equitable estoppel does not apply because plaintiffs fail to allege affirmative misconduct on the part of defendant, and none of the documents promised to waive the penalty, and some explicitly warned of the penalty, so there was no definite misrepresentation of fact contained therein as to whether the penalty would be assessed; 2) since plaintiffs did not show inability to pay or undue hardship, they cannot seek refuge in the "reasonable cause" exception; and 3) plaintiff's arguments regarding notice and demand all fail.

Appellate Information

• Decided 02/11/2013
• Published 02/11/2013

Judges

• LYNCH

Court

• United States First Circuit

Counsel