David M. Kelley David M. Kelley, Estate of Nancy I. Kelley, Deceased v. Commissioner Internal Revenue Service, David M. Kelley Mary L. Kelley v. Commissioner Internal Revenue Service

45 F.3d 348 75 A.F.T.R.2d 95 -758, 95-1 USTC P 50,062 David M. KELLEY; David M. Kelley, Executor; Estate of Nancy I. Kelley, Deceased, Petitioners-Appellants, v. COMMISSIONER INTERNAL REVENUE SERVICE, Respondent-Appellee. David M. KELLEY; Mary L. Kelley, Petitioners-Appellants, v. COMMISSIONER INTERNAL REVENUE SERVICE, Respondent-Appellee. Nos. 93-70867, 94-70113. United States Court of Appeals, Ninth Circuit. Argued and Submitted Dec. 8, 1994. Decided Jan. 23, 1995. Arthur H. Boelter, Boelter & Gale, Seattle, WA, for petitioners-appellants. Bridgett M. Rowan and Marion E.M. Erickson, Tax Div., U.S. Dept. of Justice, Washington, DC, for respondent-appellee. Appeals from a Decision of the United States Tax Court. Before: NOONAN, O'SCANNLAIN, and LEAVY, Circuit Judges. LEAVY, Circuit Judge: 1 In these consolidated appeals we are called upon to determine whether the United States Tax Court ("Tax Court") possesses the equitable power to reform consent-to-extend agreements entered into between taxpayers and the revenue collecting arm of the federal government. For the reasons which follow, we conclude that the Tax Court has a limited equitable power to reform such agreements, so…