-9- Federal tax executed by an executor is not rendered invalid by provisions of any State law. Bartlett v. Commissioner, 16 B.T.A. 510, 513 (1929). We have held that one co-executor may bind an estate irrespective of State law requirements. See Ewart v. Commissioner, 85 T.C. 544, 549 (1985), affd. 814 F.2d 321 (6th Cir. 1987). Thus, we hold that Ms. Gardiner’s execution of Form 900 effectively extended the period of collection of the Estate’s unpaid taxes to December 31, 1993. A representative of an estate paying a debt of the estate before paying a claim of the Government is liable to the extent of the payment for unpaid claims of the Government. 31 U.S.C. sec. 3713(b)(1994). Here, there is no question but that petitioner permitted the Estate to make payments to others and that at the time the notice of liability was mailed to petitioner there remained unpaid estate taxes. The Estate made payments to Ms. Gardiner not only prior to the date the co-executors signed Form 890 (that is, prior to July 24, 1981) but also in 1982 and 1986 totaling approximately $15,500. These latter payments appear to be made to Ms. Gardiner as beneficiary, rather than as executor. In defending his making the latter payments, petitioner states in his post-trial brief: those payments were made at a time when Petitioner was attempting to communicate and resolve the tax liability with the Internal Revenue Service. As indicated by this Petitioner previously the State of Virginia inheritance tax division closed the estate and Petitioner never received any response to its [sic] communications to the Internal Revenue Service and while, with hindsight, thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011