Estate of Bender v. Commissioner of Internal Revenue

OPINION OF THE COURT

GARTH, Circuit Judge:

The executrix of the estate of Edward Bender (the Estate) has appealed, and the Commissioner of Internal Revenue (the IRS) has cross-appealed, from the July 2, 1986 decision of the United States Tax Court which assessed a deficiency in estate tax in the amount of $163,500.40. The deficiency results from the manner in which certain income tax liabilities and income tax “overpayments” were treated by the Tax Court.

The Tax Court made two holdings which led to its calculation of the estate tax deficiency. It first held that the Estate was obliged to offset…