COLLATERAL ESTOPPEL DEFENSE DISALLOWED WHEN NOT INITIALLY RAISED DURING ADMINISTRATIVE PROCEEDING: TRUE V. UNITED STATES
In True v. United States,1 the U.S. Court of Appeals for the Tenth Circuit held that collateral estoppel claims omitted from an administrative refund filing were deemed waived for purposes of judicial review. The court then applied the step transaction doctrine to taxpayers’ oil and gas transactions and concluded that the district court’s grant of summary judgment to the government, on the grounds that the taxpayer manipulated interdependent transactions toward an intended purpose, was insufficiently supported by evidence to preclude the existence of a genuine issue of material fact.
Part I of this Note summarizes the background and facts of True II. Part II discusses the holdings of the district court and the Tenth Circuit. Part III analyzes the Tenth Circuit’s decision and concludes that it purposefully established new common law.