- 10 - diverted from himself and his relatives their share of the income tax burden”. The complaint did not name Mr. Braunstein. On January 31, 1991, petitioner proposed settling her suit against Mr. Deutsch. She asked the estate to place $124,000 in escrow until expiration of the 3-year period of limitations on petitioner's 1989 Federal income tax return, to be paid only if respondent determined an income tax deficiency against petitioner by reason of her receipt of the elective share. In the same letter, petitioner asserted that “no case law, statutory law or IRS ruling * * * holds that the Florida elective share carries out distributable net income”. Mr. Deutsch responded that he did not wish to play “audit roulette”, and counter-offered to pay petitioner $50,000 to settle all her claims and serve as a “war- chest” for any controversy with respondent. In April 1991, petitioner accepted that offer and settled her suit against Mr. Deutsch for a payment of $50,000. On August 13, 1993, prior to the August 15, 1993, expiration of the period of limitations on assessment of a 1989 income tax deficiency against the estate, respondent determined that petitioner had received a distribution of income of $707,095 from the estate during 1989 and sent her a notice of a deficiency of $201,825 in her income tax for that year. Petitioner filed a timely petition with this Court.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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