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the distribution to the beneficiary, for so much of the estate tax
as remains unpaid. 31 U.S.C. sec. 3713(b) (1994).
In the instant case, the IRS determined that petitioner was
personally liable for unpaid estate taxes due by the Estate of
Marguerite B. Greer because he allowed the Estate to make payments
to its creditors, as well as a distribution to Ms. Gardiner as sole
beneficiary of the Estate, without first satisfying the estate tax
claim of the Government. Petitioner filed a petition in this Court
challenging the IRS’ determination. We have jurisdiction to hear
petitioner’s case. Secs. 6212, 6213, 6901; Rule 13(a).
Petitioner contends that the period of collection of the
Estate’s unpaid estate taxes had expired prior to the mailing of
the notice of liability. We hold that it did not. The reasoning
for our holding follows.
Section 6901(c)(3) provides that the period of limitations for
assessment of fiduciary liability shall be not later than 1 year
after the liability arises or not later than the expiration of the
period for collection of the tax in respect of which such liability
arises, whichever is the later. Section 6502 provides that where
the assessment of tax has been made within the period of
limitations properly applicable thereto (which here it has been2),
2 Sec. 6501(a) requires that the tax must be assessed
within 3 years of the date the tax return was filed. In the
instant case, the estate tax return was filed on June 4, 1979,
and the executors signed Form 890 consenting to the deficiency on
July 24, 1981. The assessment of the deficiency was made on
(continued...)
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