Estate of Papson v. Commissioner
United States Tax Court
Decedent died in 1973 owning, inter alia, as a closely held business, a shopping center. In 1974, petitioner elected, pursuant to sec. 6166, I.R.C. 1954, to pay its outstanding estate tax liability on the installment method. In 1975, Congress changed the interest rate from 4 percent to a higher variable rate, effective July 1, 1975. Held, the higher variable rate applies to the installments due from petitioner from and after that day.
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Decedent died in 1973 owning, inter alia, as a closely held business, a shopping center. In 1974, petitioner elected, pursuant to sec. 6166, I.R.C. 1954, to pay its outstanding estate tax liability on the installment method. In 1975, Congress changed the interest rate from 4 percent to a higher variable rate, effective July 1, 1975. Held, the higher variable rate applies to the installments due from petitioner from and after that day. Held, further, the rate change did not violate any of petitioner's constitutional rights.
1Opinion of the Court
SUPPLEMENTAL OPINION1
Tannenwald, Judge:
This case is before us on a Rule 1552 computation to determine the amount of interest to be allowed as an administration expense pursuant to section- 2053(a)(2).3 The sole issue for decision is whether petitioner, which elected under section 6166 to pay its estate tax on the installment method, is constitutionally protected from paying interest on the amount outstanding after June 30, 1975, at the variable rate enacted by Congress in 1975 (sec. 6621). This issue is one of first impression as far as the constitutional issue raised by petitioner is…
2Cases cited25 opinions
- Usery v. Turner Elkhorn Mining Co.Supreme Court of the United States · 1976
- Lynch v. United StatesSupreme Court of the United States · 1934
- Reisman v. CaplinSupreme Court of the United States · 1964
- Nichols v. CoolidgeSupreme Court of the United States · 1927
- Welch v. HenrySupreme Court of the United States · 1938
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3Cited by9 opinions
- Solowiejczyk v. CommissionerUnited States Tax Court · 1985
- Estate of Baumgardner v. CommissionerUnited States Tax Court · 1985
- Estate of Ruby Miller Whittle, Deceased, Citizens National Bank of Decatur, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1993
- Estate of Heffley v. CommissionerUnited States Tax Court · 1987
- Demos v. CommissionerUnited States Tax Court · 1994
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