Opinion ID: 686831
Heading Depth: 2
Heading Rank: 2

Heading: Tax Court's Equitable Decision

Text: 17 Taxpayers next argue that, regardless of whether or not the Tax Court had the equitable power to reform the two agreements, the facts do not support its finding that the parties intended the forms to cover years 1978 and 1980; and, in the alternative, even if the facts do support such a finding, the equities do not point in favor of the IRS. 18 We reject both arguments. Our review of the materials shows no clear error in the Tax Court's finding that the parties knew and understood that the two IRS Forms 872-A applied to tax years 1978 and 1980, not 1979. We likewise find no abuse of discretion in the Tax Court's determination that the equities point in favor of reforming the two documents to reflect the parties' agreement. 7 Accordingly, we hold that the Tax Court did not err by ruling in favor of the IRS. See Buchine v. C.I.R., 20 F.3d at 179-80.