- 9 - Since fraud on the part of the taxpayer as to the alleged deficiencies is the issue in this case, it is correct to state that if there is no deficiency, there can be no fraud in connection with the alleged deficiency. This evidence should have been received. [Jenkins v. United States, 313 F.2d 624, 627 (5th Cir. 1963).] We have also considered whether an estate may deduct the items reported on its estate tax return, in order to determine its underpayment for purposes of applying section 6663(a), as well as any unreported item that is properly deductible as of the date that the estate tax return is filed. Such a result would be reached by interpreting the phrase "tax required to be shown on a return", as it appears in section 6663(a), to mean that an estate must determine the related underpayment for that section by taking into account only those items that could have been properly deducted from the gross estate on the date that the return was filed. We reject this interpretation. Congress did not intend for that phrase to be understood in a temporal sense, but intended that the phrase serve as a rule of classification. In other words, the phrase "tax required to be shown on a return" merely refers to the type of tax that is subject to section 6663(a); namely, a tax payable with a return as opposed to, for example, a tax payable by stamp. In addition to our literal reading of section 6663(a), in the view of the text of section 6663 as a whole, we find Congress' intent for the relevant phrase by examining the evolution of section 6663(a). Section 6663(a) was added to the Code by section 7721(a) of the Omnibus BudgetPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011