Fahnestock v. United States

MADDEN, Judge.

The plaintiffs, executors of the will of Harris Fahnestock, a resident of New York City, who died on October 11, 1939, sue for interest on a refund made to them of federal estate taxes. The question is whether or not a refund of $41,960.06 of estate taxes made to the plaintiffs by the Government was “based on the credit” which Section 813 of the Internal Revenue Code, 26 U.S.C.A. § 813, permits the taxpayer to take against federal estate taxes, for similar taxes paid to a state. If the refund was “based on the credit” Section 813(b) provides that it should snot bear interest. If…