Priest Trust v. Commissioner
United States Tax Court
Petitioners' transferor, a decedent's estate, was allowed a deduction by the Commissioner of Internal Revenue for amounts currently distributable to beneficiaries, and those amounts were included by him in the income of the beneficiaries, against whom he determined deficiencies. One of the beneficiaries appealed to the Tax Court which held that only the amount paid to her was includible in her income.
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Petitioners' transferor, a decedent's estate, was allowed a deduction by the Commissioner of Internal Revenue for amounts currently distributable to beneficiaries, and those amounts were included by him in the income of the beneficiaries, against whom he determined deficiencies. One of the beneficiaries appealed to the Tax Court which held that only the amount paid to her was includible in her income. The Commissioner thereupon determined a deficiency against petitioner arising out of the deduction erroneously allowed to its transferor under section 3801 of the Internal Revenue Code, the…
1Opinion of the Court
OPINION.
KeRN, Judge:
The determination of the primary question involved here depends upon the correct interpretation of section 3801 of the Internal Revenue Code (section 820 of the Revenue Act of 1938). If that section is not applicable to the facts before us, the error which this proceeding is designed to correct is beyond reach by reason of the statute of limitations.
The applicable provisions of the statute, contained in section 3801 (b) of the code, are set forth below.1 The exact provision with which we are immediately concerned is as follows:
* * * Such adjustment shall be made only if…
2Cited by16 opinions
- United States v. W. A. Rushlight, Raymond G. Rushlight, and W. A. Rushlight, of the Estate of Betty Rushlight, DeceasedCourt of Appeals for the Ninth Circuit · 1961
- Jack O. Chertkof and Sophie Chertkof v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1981
- Heer-Andres Inv. Co. v. CommissionerUnited States Tax Court · 1954
- Chertkof v. CommissionerUnited States Tax Court · 1976
- Yagoda v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1964
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