Moffett v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. Moffett

FRANK, Circuit Judge.

1. The taxpayer’s appeal

Section 23(c) (1) (D), 26 U.S.C.A., provides that, in computing a taxpayer’s net taxable income, there shall be no deduction of estate taxes paid by the taxpayer. Under § 827(b), 26 U.S.C.A., taxpayer, as a transferee, was “personally liable” for the estate tax. Accordingly, she could not, like a creditor, stand in the government’s shoes, and therefore we regard as untenable her contention, i. e., that, by her payment of that tax, she became subrogated to the government’s rights so that the annuity payments . represented payment of a debt, not…