Quinto Depaoli, Jr., Estate of Quinto Depaoli, Deceased, Soila Depaoli and Rachel Craig, Personal Representatives v. Commissioner of Internal Revenue

JENKINS, Senior District Judge.

This case arises out of the taxpayers’ efforts to escape estate taxes by disclaiming a testamentary transfer of property. The Tax Court held the purported disclaimer invalid for estate tax purposes, subjecting the taxpayers to liability not only for estate taxes but also for a gift tax and an addition to tax under section 6651(a)(1) of the Internal Revenue Code. See 66 T.C.M. (CCH) 1493, 1993 WL 500190 (1993). The taxpayers appeal. We have jurisdiction under I.R.C. § 7482(a)(1) and reverse.

I. BACKGROUND

Quinto DePaoli, Sr., a resident of New Mexico, died in 1987.…