Estate of Sylvia P. Goldman, Deceased, Marsha Goldberg and Linda Tanenbaum, Co-executrices - Page 17

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            decedent retained an interest in the funds, and the amounts were                          
            properly includable in the gross estate.                                                  
                  Petitioner has not carried its burden of proof.  Although it                        
            claims that Marsha and Linda paid for decedent's hairdressers,                            
            doctors, housekeepers, doormen, moving people, and manicurists,                           
            it has not produced any records to substantiate its claim.  It                            
            produced no cancelled checks or receipts.  Moreover, neither                              
            Marsha nor Linda could recall whether they had actually spent                             
            $25,000 each.  In fact, Linda testified that decedent intended                            
            that some of the money was to be used for future outlays.                                 
            Therefore, we reject petitioner's argument and find that the                              
            transfers were not reimbursement for expenditures made on behalf                          
            of decedent.                                                                              
                  We also reject petitioner's alternative argument that the                           
            transfers qualified as gifts.  The purported gifts fail due to an                         
            absence of sufficient evidence of decedent's intent and Marsha's                          
            lack of authority to make a gift.  Accordingly, we sustain                                
            respondent's determination that the value of funds (i.e.,                                 
            $50,000), represented by the $25,000 checks paid to Marsha and                            
            Linda, is includable in the gross estate pursuant to section                              
            III.  Accuracy-related Penalty for Negligence Under Section 6662                          
                  Respondent contends that petitioner was negligent in                                
            understating its tax liability.  Section 6662(a) imposes a                                
            penalty in an amount equal to 20 percent of the portion of the                            

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