Estoppel

About Estoppel:

The Estoppel Doctrine is an equitable defense that bars the U.S. Internal Revenue Service from taking a position that is inconsistent with a prior position. The burden is on the taxpayer, however, to show that he or she relied on the conduct of the person against whom the defense is being asserted.

U.S. and other Developed Countries International Tax Meaning

Rule under which one is precluded and forbidden by law to speak against his own act or deed. If a certain position has been taken, another person has relied on that, and the taxpayer are aware of that reliance, there is often an estoppel against the taxpayer arguing the contrary to his or her original position in a court proceeding.