Estate of Bankhead v. Commissioner
United States Tax Court
The deceased periodically borrowed money from a corporation which she owned with her family. After her death, the corporation failed to make a claim against her estate for the amounts then due. Ala. Code tit. 61, sec. 211 (1960), prohibits payment of any claim against an estate not filed with the probate court within 6 months of the grant of letters testamentary.
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The deceased periodically borrowed money from a corporation which she owned with her family. After her death, the corporation failed to make a claim against her estate for the amounts then due. Ala. Code tit. 61, sec. 211 (1960), prohibits payment of any claim against an estate not filed with the probate court within 6 months of the grant of letters testamentary. Held: The operation of the Alabama statute extinguished any liability the estate may have had to the corporation and released additional funds for the estate to distribute to beneficiaries. Therefore, the petitioners, the estate of…
1Opinion of the Court
Sterkett, Judge:
The respondent determined a deficiency in the petitioners’ Federal income tax for the calendar year 1965 in the amount of $18,891.47. The issues for our determination are:(1) Whether the petitioners received income in the amount of $40,550 on a cancellation of indebtedness in that amount owed by Emelil Bankhead to Bankhead Broadcasting Co., Inc., within the meaning of section 61 (a) (12), I.R.C. 1954.1 And, if so,(2) Whether a deficiency can be assessed for the calendar year 1965 under the provisions of section 6501 (e).
FINDINGS OF FACT
Some of the facts have been stipulated.…
2Cases cited9 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Commissioner v. JacobsonSupreme Court of the United States · 1949
- Bear Manufacturing Company v. United StatesCourt of Appeals for the Seventh Circuit · 1970
- Smyth, Collector of Internal Revenue v. BarnesonCourt of Appeals for the Ninth Circuit · 1950
- Brown v. the First National Bank of MontgomerySupreme Court of Alabama · 1954
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3Cited by5 opinions
- Miller v. CommissionerUnited States Tax Court · 1981
- Estate of Miller v. CommissionerUnited States Tax Court · 1978
- Estate of Bankhead v. CommissionerUnited States Tax Court · 1973
- Helis v. United StatesUnited States Court of Federal Claims · 2003
- Miller v. CommissionerUnited States Tax Court · 1981