Pearson v. Commissioner
United States Tax Court
Petitioner was the sole life income beneficiary of a testamentary trust established by the will of his deceased wife. In the taxable year petitioner received certain distributions of income from the trust. Later in the year the testamentary trustees were compelled to pay an estate tax deficiency plus interest.
Read the full summary
Petitioner was the sole life income beneficiary of a testamentary trust established by the will of his deceased wife. In the taxable year petitioner received certain distributions of income from the trust. Later in the year the testamentary trustees were compelled to pay an estate tax deficiency plus interest. They took the position that under the terms of the will the estate tax was payable out of corpus, but that, the will being silent as to how interest should be paid, under the laws of Pennsylvania the interest must be paid out of income of the estate rather than to invade the corpus.…
1Opinion of the Court
OPINION.
Black, Judge:
The Commissioner has determined a deficiency in petitioner’s income tax of $6,170.75 for the year 1940. This deficiency is due to two adjustments made by the Commissioner as follows: (a) Income from fiduciary, $111.35; and (b) interest, $13,616.97. The deficiency notice gives the following explanation of these adjustments:(a) An examination of the books and records of the trustee of the trust U/W Olive P. O. Pearson discloses that your share of the net income for the year 1940 is $26,649.27. Inasmuch as you have reported only the amount of $26,537.92 from this source,…
2Cases cited4 opinions
- Mellon EstateSupreme Court of Pennsylvania · 1943
- Koppers Co. v. CommissionerUnited States Tax Court · 1944
- GREEN v. COMMISSIONERUnited States Tax Court · 1944
- Fidelity v. DietzSupreme Court of Pennsylvania · 1890
3Cited by13 opinions
- Estate of Bahr v. CommissionerUnited States Tax Court · 1977
- Estate of Richardson v. CommissionerUnited States Tax Court · 1987
- In re Estate of MorganOhio Supreme Court · 1981
- Wade v. CommissionerUnited States Tax Court · 1945
- Behl v. CommissionerUnited States Tax Court · 1946
8 more not listed; retrieve them via the Exa API.