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dent’s estate.6 In that notice, respondent determined that
decedent had a general power of appointment with respect to one-
sixth of the principal of the testamentary trust and that dece-
dent exercised that power in decedent’s will. Consequently,
respondent increased decedent’s total gross estate by $314,612,
which was the date-of-death value that the estate attributed to
such power in the explanation as to Schedule H and which respon-
dent accepted.7 In the notice, respondent further determined
that at the time of her death decedent had the power to withdraw
$5,000 from the principal of the inter vivos trust and that that
power was a general power of appointment. Consequently, respon-
dent increased decedent’s total gross estate by $5,000.
OPINION
The parties do not address section 7491(a). The estate
filed decedent’s estate tax return on September 27, 1999. We
presume that respondent’s examination of that return commenced
after July 22, 1998, and that section 7491(a) is applicable in
the instant case. The estate has failed to establish that it
6In the notice, respondent determined to allow all of the
expenses that the estate claimed in Schedule J, Funeral Expenses
and Expenses Incurred in Administering Property Subject to
Claims, included as part of decedent’s estate tax return. The
parties stipulated that as a result of the instant case the
estate has incurred certain additional expenses that are deduct-
ible.
7The parties stipulated that the value of one-sixth of the
principal of the testamentary trust on the date of decedent’s
death was $320,732.11, and not $314,612.
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