Estate of Mildred Geraldine Letts, Deceased, James P. Letts III and Joanne L. Magbee, Coexecutors - Page 20

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          Estate of James Letts, Jr., did not provide any facts to                    
          respondent that would show that the Item II trust property was              
          terminable interest property.  For example, the estate tax return           
          of the Estate of James Letts, Jr., did not include a copy of his            
          will.  The Commissioner may rely on a presumption of correctness            
          of a return or report that is given to the Commissioner under               
          penalties of perjury.  Hughes & Luce, L.L.P. v. Commissioner,               
          supra.  The time to assess tax against the Estate of James Letts,           
          Jr., expired.  Thus, the second element has been satisfied.                 
          Herrington v. Commissioner, supra; Mayfair Minerals, Inc. v.                
          Commissioner, supra; Spencer Medical Associates v. Commissioner,            
          supra; Hughes & Luce, L.L.P. v. Commissioner, supra.                        
                    c.   Whether the Taxpayer Is Changing a Representation            
                         Previously Made After the Time To Assess Tax Has             
                         Passed                                                       
               Petitioner represented on its estate tax return that the               
          Item II trust property was terminable interest property.  That              
          representation is inconsistent with the representation made on              
          the return of the Estate of James Letts, Jr., that the Item II              
          trust property was not terminable interest property.  Decedent              
          died after the time to assess tax against the Estate of James               
          Letts, Jr., had passed.  Thus, the third element for the duty of            
          consistency is satisfied.                                                   








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