- 14 - computation, respondent, for the first time, alleges that the notice of deficiency was in error, and that $120,172 of the credit allowed should have been reflected on a different line in the notice of deficiency as "Additional credit for state death taxes allowable, if substantiated." Had this been done, the amount of the deficiency determined by respondent would have been increased by $120,172.11 Respondent now wants to amend the answer to correct the error and increase the deficiency. Apparently, assuming that this will be permitted, respondent has included this adjustment in the Rule 155 computation. The problem with respondent's position is that Rule 155(c) precludes a party from raising a new issue in a proceeding under Rule 155. The credit for State death taxes was previously uncontested and has nothing to do with the other computational issues. We, therefore, deny respondent's motion for leave to amend answer. The Rule 155 computation should not include any change to the credit for State death taxes as determined in the notice of deficiency. Appropriate orders will be issued. 11Respondent recognizes that the actual impact of respondent's error will probably be far less than this since, as a result of our prior opinion, petitioner's taxable estate will be increased. To the extent petitioner is obligated to pay additional State death taxes, it would be entitled to a substantial amount of the credit already allowed. See sec. 2011.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Last modified: May 25, 2011