- 3 - Respondent determined that petitioner's gross estate included 100 percent of the proceeds from three life insurance policies and the undiscounted value of two parcels of real property. Petitioner filed a petition for redetermination in the Tax Court. The Tax Court decided that petitioner's gross estate included 100 percent of the proceeds from the life insurance policies and that a 20-percent discount applied in valuing the properties. Estate of Cervin v. Commissioner, T.C. Memo. 1994- 550, revd. and remanded 111 F.3d 1252 (5th Cir. 1997). We denied petitioner's motion for litigation costs under section 7430. Petitioner appealed, asserting that only 50 percent of the life insurance proceeds should be included in decedent's gross estate and claiming entitlement to an award of reasonable litigation costs under section 7430. The Court of Appeals for the Fifth Circuit determined that petitioner had substantially prevailed with respect to the amount in controversy and that the position of the United States with respect to the insurance proceeds and the property valuation was not substantially justified. The Court of Appeals held for petitioner with respect to the life insurance proceeds and award of litigation costs and remanded the case to the Tax Court for a determination of reasonable litigation costs. Estate of Cervin v. Commissioner, supra.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011