Estate of Algerine Allen Smith, Deceased, James Allen Smith, Executor - Page 8

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          estate’s position that since this Court entered a decision that             
          there was a $238,847.24 overpayment, it is this amount, plus                
          interest thereon, which should be refunded to the estate.                   
          Accordingly, the estate seeks $85,336.83, the difference between            
          $238,847.24 and $153,510.41, plus interest thereon.5  We ordered            
          respondent to respond to the motion.                                        
               In response, respondent argues that at the time the Court’s            
          decision became final, the estate owed assessed and unpaid                  
          underpayment interest of $85,336.83.  Respondent acknowledges               
          that the estate’s total payments exceed both the tax and interest           
          regarding the estate tax liability but bases his argument on the            
          allocations of the payments that respondent made between tax and            
          interest.  Respondent argues that he had originally, before the             
          final decision, assessed underpayment interest in the amount of             
          $410,848.76 and allocated $144,947.89 (from the $646,325.76,                
          March 31, 1998, advance payment) to that underpayment interest.             
          On the basis of the final decision, respondent explains that he             
          abated $180,564.04 in underpayment interest.  Thus, after all               
          respondent’s allocations and abatements, respondent alleges that            
          $85,336.83 in underpayment interest remained unpaid.  Respondent            
          states that he subtracted this amount from the $238,847.24                  
          overpayment that we determined, and he applied the $85,336.83 to            


               5In its motion, the estate refers to $85,337.83.  However,             
          it is clear that the estate made a mathematical error, and the              
          correct figure is $85,336.83.                                               




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