Estate of Robert E. Sympson, Deceased, Elizabeth C. Sympson Personal Representative and Elizabeth C. Sympson - Page 3

                                        - 3 -                                         

          failed to report it in income.  The factors we analyzed included            
          the following:  During the years in issue Mr. and Mrs. Sympson              
          purchased a 25-acre ranch and home valued in 1986 at $500,000,              
          thereby doubling their home investment and tripling their                   
          mortgage payments; they purchased two new Jaguars; they built a             
          $50,000 to $75,000 polo field on their ranch; and they employed a           
          maid.  Mr. Sympson gave Mrs. Sympson an $8,000 diamond and a                
          $3,000 fur coat.                                                            
               The Court of Appeals held that even assuming Mrs. Sympson              
          had benefited substantially, that was not a dispositive factor,             
          considering that she and her husband were later forced into                 
          bankruptcy and some of their properties (not including the                  
          $500,000 ranch) were turned over to the embezzlement victim.  The           
          Court of Appeals said:  "Because a determination of equity is               
          based on all the facts and circumstances, we hold that under                
          these circumstances it would be inequitable as well as                      
          unconscionable to hold Mrs. Sympson liable for these                        
          deficiencies."  Estate of Sympson v. Commissioner, 75 AFTR 2d at            
          95-2257, 95-1 USTC par. 50,276, at 88,021.                                  
               The parties stipulated that of the amounts received by Mr.             
          Sympson from Olga B. Roderick's accounts, $145,000, $107,640,               
          $109,444, $250,233, $105,350, and $181,005 for the 1982, 1983,              
          1984, 1985, 1986, and 1987 taxable years, respectively, were not            
          reported on petitioners' income tax returns.                                

Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011