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fair market value respondent used in determining the amount
includable in decedent’s gross estate and that the claim was
being filed to protect the Administration Trust’s rights pending
the outcome of this Tax Court proceeding to redetermine the date-
of-death fair market value of the shares. On April 22, 1991,
respondent disallowed the Administration Trust’s claim for refund
of 1986 income tax on the ground that the claim had not been
timely filed within the 3-year statutory limitation period.
Not considering any other issues, the income tax that would
have been reported by the Administration Trust from the gain on
the sale of the 6,650 shares, using a sales price of $2,150 and a
cost or other basis of $1,700 per share, would have been
approximately $596,378. Not considering any other issues, the
difference between the amount of income tax actually paid by the
Administration Trust on the gain from the sale of 6,650 shares
(approximately $862,377) and the amount of such tax that would
have been reported due using a basis of $1,700 per share
(approximately $596,378) would have been approximately $265,999.
Based on our decision that the fair market value of the shares
was $1,700 per share at the time of decedent’s death, her gross
estate is increased by $1,740,180 (8,924 shares X $195 per share)
over the amount shown on the Federal estate tax return, and this
increase results in the increase of $957,099 in Federal estate
tax liability previously described.
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