- 25 - estate were legitimate. Respondent argues they were not. Respondent has generally determined that the estate, acting through its coexecutors: (1) Attempted to conceal assets from the Government, (2) intentionally undervalued assets, and (3) intentionally overvalued deductions. Respondent has adjusted the reported values of the subject assets and deductions, determined values for the unreported assets, and determined that the estate committed fraud. The estate generally argues that it did nothing fraudulent. According to the estate, it may have misvalued some of the reported assets and deductions, and failed to report some other assets, but it did not do so with the requisite fraudulent intent. The estate also asserts that it did not misvalue the items to the extent determined by respondent. We must disentangle the proffered values of decedent's wealth and determine whether the disputed items are adjustments to his reported taxable estate. We also must pass on respondent's determination of fraud. Fraud is a powerful assertion that we do not take lightly. A bright line exists between fraudulent and negligent conduct, and an attempt to remove value from an estate does not necessarily constitute fraud. One is not required to arrange his or her affairs so that the Government will receive more tax than it is rightfully owed. Nor is it fraudulent to construe an ambiguous law reasonably in a manner that is adverse to the Government. Fraud occurs, however,Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
Last modified: May 25, 2011