-67-
Petitioner claimed this expense on Schedule L of Form 706 as an
expense incurred in administering property for the "Maintenance,
insurance, upkeep and cleaning of condominium at [address]".27
The mere listing of the deduction on the Form 706 does not
disclose the fact that the expense was based on the estimated
present value of 5 years of payments to a maid whose duties, at
least in part, included cleaning and waxing personalty bequeathed
to Lewis, Betty, and Jack. Reporting a deduction for the expense
of maintaining furniture and other personal property bequeathed
to decedent's children as an expense of maintaining the
condominium is misrepresentation, not disclosure.
We hold, therefore, that petitioner is liable for the
accuracy-related penalty for the portion of any underpayment of
the tax required to be shown on the return that is due to the
deduction claimed for the expense of waxing and cleaning
decedent's personal property.
Jack testified that the balance of the expense was for
paying the maid to do "whatever was needed to maintain the
property." Not disclosed on the return, however, was the amount
of the expense allocated for this purpose, or that the executors
did not intend to distribute the property or offer it for sale.
The mere listing of this expense on the Form 706 is not a
complete, full, and substantive disclosure. See Notice 90-20,
1990 1-C.B. at 329.
27 See supra note 2.
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