- 26 -
makes the restoration after his death.16 Similarly, in the
instant case, the relevant estate tax consequences should not
vary where the estate, rather than decedent, makes the payment
upon which section 1341(a) relief is predicated.17 The right to
section 1341(a) relief clearly would have been includable in the
gross estate had Exxon's claim been settled and paid prior to
decedent's death. We see no reason why decedent's "contingent"
right to section 1341(a) relief should not be included in her
gross estate.18
16The District Court stated: "when Congress passed Section
1341 it did not intend to recognize a debt of the Government to
the taxpayer during his lifetime and deny the same obligation to
his personal representatives and to his estate." Estate of Good
v. United States, 208 F. Supp. 521, 523 (E.D. Mich. 1962); see
also Nalty v. United States, 35 AFTR 2d 75-1449, 75-1 USTC par.
9441 (1975); Estate of Stein v. Commissioner, 37 T.C. 945, 958
(1962).
17While we recognize that the parties in Estate of Good v.
United States, supra at 523, agreed that the gross estate would
be increased by the amount of any sec. 1341(a) relief, we
nevertheless find the reasoning in the District Court's opinion
persuasive.
18In United States v. Simmons, 346 F.2d 213, 214 (5th Cir.
1965), the decedent paid a deficiency in his Federal income
taxes, and the attorney for his estate filed a claim for refund
following his death. After the refund claim was disallowed, the
estate filed suit. The refund litigation was eventually settled,
and a refund was paid. In the interim, the estate had filed its
estate tax return listing the income tax claim as having no value
but requesting that the estate tax liability be held in abeyance
pending the outcome of the claim. The Commissioner determined
that the claim was includable in the decedent's estate and valued
the claim at the amount of the settlement. Although the estate
conceded that the claim was includable in the gross estate, it
contended that the claim had no value at the time of the
decedent's death.
(continued...)
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