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payments to Faith B. Gardiner were not advisable, at the
time, she was in necessitous circumstances and Petitioner
could get no response from the Internal Revenue Service.
Petitioner’s argument misses the point. As petitioner
apparently recognizes, the distributions to Ms. Gardiner were
inadvisable. No distributions should have been made to Ms.
Gardiner before the Estate satisfied its tax obligation.
Petitioner could have avoided the situation he now faces by making
a written application for discharge of personal liability as
provided for in section 2204(a).4
Petitioner made payments of approximately $70,000 to Ms.
4 Sec. 2204(a) provides:
(a) General Rule.
If the executor makes written
application to the Secretary for
determination of the amount of the tax and
discharge from personal liability therefor,
the Secretary (as soon as possible, and in
any event within 9 months after the making of
such application, or, if the application is
made before the return is filed, then within
9 months after the return is filed, but not
after the expiration of the period prescribed
for the assessment of the tax in section
6501) shall notify the executor of the amount
of the tax. The executor, on payment of the
amount of which he is notified (other than
any amount the time for payment of which is
extended under section 6161, 6163, or 6166),
and on furnishing any bond which may be
required for any amount for which the time
for payment is extended, shall be discharged
from personal liability for any deficiency in
tax thereafter found to be due and shall be
entitled to a receipt or writing showing such
discharge.
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Last modified: May 25, 2011