Estate of Liftin v. United States

The Liftin Estate tax return was filed late, after a delay resulting from the time required for Mrs. Liftin to obtain United States citizenship and to resolve other estate issues. However, the estimated estate tax of $877,300 had been paid two years earlier, as provided by statute, before any late-filing penalty could accrue. Nonetheless, the IRS levied the same 25% *983late-filing penalty as if no payment of estimated tax had been made. My colleagues on this panel agree with this outcome.

With all respect to my colleagues, they are incorrect. The role of the estimated tax payment is to avert the…