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additional administration expenses, such as executor’s
commissions, legal fees, accounting fees, bookkeeping fees, and
expenses relating to sales of art necessary to raise cash for the
payment of taxes and other art-related expenses. Executor
alleges that he cannot currently pay Decedent’s gift taxes
because the estate is short on cash, and the estate will have to
consummate a “substantial transaction” in order to pay Decedent’s
gift taxes.3 Executor alleges that he cannot sell the estate’s
assets in the near future because he will receive less than fair
value.
Executor relies primarily on Estate of Bailly v.
Commissioner, 81 T.C. 246, supplemented by 81 T.C. 949 (1983), in
support of his motion. Executor also asserts that the Court will
be minimally inconvenienced by holding the record open for the
requested period of time.
We disagree with Executor’s arguments, and we find his
reliance misplaced. First, Estate of Bailly is clearly
distinguishable on its facts. In that case, the Commissioner had
no objection to a deferral of the decision, whereas here the
2(...continued)
the artist in a variety of price levels; and it is in
the enviable position of being capable of presenting
for sale to experienced collectors and museums examples
of the most highly recognizable and prized sculptures
of her career, as well as more modestly valued works
that are attractive to beginning collectors and smaller
museums.
3 Executor also claims that Decedent’s Federal gift taxes
remain unpaid because he has yet to receive a bill from the
Internal Revenue Service. We give this argument little regard.
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