City Bank Farmers Trust Co v. United States

MADDEN, Judge.

The plaintiff is the Ancillary Executor of the will of Carlos A. Grace, deceased, who was a citizen and resident of England, and who died in 1946. The plaintiff sues for the refund of $666,762.-75 of estate taxes which the estate paid to the United States but which it says it should not have had to pay. The tax was imposed pursuant to section 861 of the Internal Revenue Code of 1939, 26 U.S.C. (1952 ed.) § 861, which says that stock in an American corporation owned and held, even by a nonresident not a citizen of the United States, should be subject to the United States estate…