IRS Legal Memorandum: "Mitigation Provisions Will Not Permit Reopening of Tax Year for Refund"

In a legal memorandum, the IRS has concluded that the mitigation provisions of the code do not allow taxpayers to reopen a tax year for a refund. Two taxpayers believe they were entitled to a tax refund based on a decreased gain on the sale of property gifted to them from the estate of a deceased woman. The IRS issued a refund, but the taxpayers sought to obtain a second refund, consequently asked that the tax year be reopened.