Opinion
Civil Action No. 00-2024
March 19, 2002
ORDER OF COURT
This is a civil action to recover monies plaintiffs paid to the United States as taxes for years 1979 and 1980. Plaintiffs contend that the amount of taxes they paid for those years was excessive, and that, therefore, they are entitled to a refund. Defendant has filed a motion for summary judgment. For the following reasons, defendant's motion is granted.
We need not dwell on this matter at length. It is undisputed that in 1988, plaintiffs and the Commissioner of the Internal Revenue Service entered into a written agreement for the settlement of plaintiffs' tax liability for the years 1979 and 1980. The agreement, commonly known as a "closing agreement," is "final and conclusive . . . except upon a showing of fraud or malfeasance, misrepresentation of a material fact." Bethlehem Steel Corp. v. United States, 270 F.3d 135, 139 (3d Cir. 2001) (internal quotations omitted). In this case, the closing agreement, memorialized on Form 866, entitled "Agreement as to Final Determination of Tax Liability" settled plaintiffs' liabilities and penalties for the 1979 and 1980 tax years. There is no evidence of fraud, malfeasance, or misrepresentation of material fact on the record. Thus, the agreement is binding on all parties and plaintiffs' are precluded from relitigating it here. Plaintiffs' arguments as to why the agreement is unenforceable are simply without merit.
Therefore, IT IS HEREBY ORDERED that defendant's motion for summary judgment [Document #10] is granted. The Clerk of Court is directed to mark this case closed.