- 9 -
to one taxpayer who was a member of the law firm to which several
taxpayers in related cases had paid substantially all of their
litigation costs. We followed Frisch, holding that "Attorney
Minahan has an equity interest in the law firm such that payment
to the law firm was in fact payment to himself and not a fee
actually incurred." 88 T.C. at 519.
In this case, however, the liability for fees was incurred
by the estate, and Cervin was one of the representatives of the
estate and one of the beneficiaries. The fees were owed to a law
firm in which Cervin had a very small minority interest. The
relationship between the fees incurred by the estate and the net
share ultimately to be credited to Cervin is so attenuated as to
be inconsequential. We do not believe that a rule that would
have applied if Cervin were the petitioner in a case commenced in
his individual capacity should extend to the estate in this case.
To reflect the foregoing,
An appropriate order and
decision will be entered.
Page: Previous 1 2 3 4 5 6 7 8 9
Last modified: May 25, 2011