Estate of Pittard v. Commissioner
United States Tax Court
The executor administrated his mother's estate managed and operated a corporation in which his mother was sole shareholder, and was a cobeneficiary of her estate. The estate tax return he filed substantially understated the value of the estate. Held, the estate is not entitled to a sec. 2053 deduction for the money the deceased borrowed from the banks and transferred to the corporation, because the estate could have been reimbursed by the corporation.
Read the full summary
The executor administrated his mother's estate managed and operated a corporation in which his mother was sole shareholder, and was a cobeneficiary of her estate. The estate tax return he filed substantially understated the value of the estate. Held, the estate is not entitled to a sec. 2053 deduction for the money the deceased borrowed from the banks and transferred to the corporation, because the estate could have been reimbursed by the corporation. Held, further: The estate's return was false and fraudulent with the intent to evade taxes. Therefore, the additions to tax under sec. 6653(b),…
1Opinion of the Court
Irwin, Judge:
Respondent determined a deficiency of $74,725.72 and an addition to tax for fraud under section 6653(b)1 of $37,362.86 in petitioner’s estate tax return filed in 1970. Other issues having been disposed of by agreement of the parties, the three issues remaining for decision are:(1) Whether the executor improperly omitted his mother’s corporation stock and her annuity payments from her original estate tax return;(2) Whether the estate’s deduction claimed for decedent’s debt on three notes was canceled by decedent’s right to look to Chapman Corp. for payment of the notes; and, if…
2Cases cited4 opinions
- Otsuki v. CommissionerUnited States Tax Court · 1969
- Mitchell v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1941
- Estate of Temple v. CommissionerUnited States Tax Court · 1976
- Fox v. CommissionerUnited States Tax Court · 1974
3Cited by154 opinions
- Petzoldt v. CommissionerUnited States Tax Court · 1989
- Niedringhaus v. CommissionerUnited States Tax Court · 1992
- Stephenson v. CommissionerUnited States Tax Court · 1982
- Parks v. CommissionerUnited States Tax Court · 1990
- Habersham-Bey v. CommissionerUnited States Tax Court · 1982
149 more not listed; retrieve them via the Exa API.