Estate of Bailly v. Commissioner
United States Tax Court
Petitioner elected under sec. 6166, I.R.C. 1954, to defer payment of Federal and Florida estate tax. Petitioner deducted on the initial Federal estate tax return an estimate of the interest to be accrued over the 10-year deferral period. Held: Due to the considerable fluctuation in interest rates and the possibility that payment can be accelerated, or that portions of the payment can be prepaid, a reasonable estimate of unaccrued interest cannot be made.
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Petitioner elected under sec. 6166, I.R.C. 1954, to defer payment of Federal and Florida estate tax. Petitioner deducted on the initial Federal estate tax return an estimate of the interest to be accrued over the 10-year deferral period. Held: Due to the considerable fluctuation in interest rates and the possibility that payment can be accelerated, or that portions of the payment can be prepaid, a reasonable estimate of unaccrued interest cannot be made. Bahr v. Commissioner, 68 T.C. 74 (1977), distinguished. Therefore, unaccrued interest on Federal and Florida estate tax liability is not…
1Opinion of the Court
OPINION
Dawson, Chief Judge:
Respondent determined a deficiency in Federal estate tax against the Estate of Pierre L. Bailly, deceased, in the amount of $380,373.
After concessions by the parties, the issue for decision is whether an estate that has properly elected under section 61661 to pay its estate tax liability in 10 equal annual installments can deduct unaccrued interest on that liability and on State estate tax liability as an administration expense under section 2053(a)(2).
This case was submitted fully stipulated pursuant to Rule 122.2 The stipulation of facts and joint exhibits are…
2Cases cited5 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Reisman v. CaplinSupreme Court of the United States · 1964
- Estate of Bahr v. CommissionerUnited States Tax Court · 1977
- Todd v. CommissionerUnited States Tax Court · 1971
- Estate of Webster v. CommissionerUnited States Tax Court · 1976
3Cited by25 opinions
- Estate of Baumgardner v. CommissionerUnited States Tax Court · 1985
- Estate of Bailly v. CommissionerUnited States Tax Court · 1983
- Marshall Naify Revocable Trust v. United StatesCourt of Appeals for the Ninth Circuit · 2012
- Estate of Richardson v. CommissionerUnited States Tax Court · 1987
- Estate of Benjamin Shapiro, Deceased, Saul A. Shapiro, and Stephen Shapiro v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1997
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