- 15 - Section 20.2053-1(b)(3), Estate Tax Regs.,1 forbids the deduction on the estate tax return of an item unless the amount of the liability “is ascertainable with reasonable certainty, and will be paid.” The provision closes with the reassurance that, if the matter is not resolved by the time of the final audit, then relief would be available in the Tax Court or in a refund suit. Respondent’s contentions in the instant case fly in the face of this reassurance. Having forbidden by regulation the taking of a deduction, even by way of estimate, on a timely filed estate tax return, respondent in the instant case proposes to limit the relief otherwise flowing from the deduction merely because the 1 SEC. 20.2053-1(b)(3), Estate Tax Regs., provides as follows: SEC. 20.2053-1. Deductions for expenses, indebtedness, and taxes; in general. * * * * * * * * * * (b) Provisions applicable to both categories. * * * * * * * (3) Estimated amounts. An item may be entered on the return for deduction though its exact amount is not then known, provided it is ascertainable with reasonable certainty, and will be paid. No deduction may be taken upon the basis of a vague or uncertain estimate. If the amount of a liability was not ascertainable at the time of final audit of the return by the district director and, as a consequence, it was not allowed as a deduction in the audit, and subsequently the amount of the liability is ascertained, relief may be sought by a petition to the Tax Court or a claim for refund as provided by sections 6213(a) and 6511, respectively.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011