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in prosecuting a claim for refund should be claimed at the time
the deficiency is contested or the refund claim is prosecuted.
See sec. 20.2053-3(c)(2), Estate Tax Regs. Furthermore, a
deduction for these fees shall not be denied, and the sufficiency
of a claim for refund shall not be questioned, solely by reason
of the fact that the amount of the fees to be paid was not
established at the time that the right to the deduction was
claimed. See id.
Petitioner has met the requirements for claiming the
deductions. Petitioner paid $21,226 of attorney's fees, $8,830
of accountant's fees, and $12,396 of appraisal costs to defend
its reporting position in an audit by the Internal Revenue
Service. Petitioner filed Form 843, Claim for Refund and Request
for Abatement, to claim a refund of the estate tax paid on these
amounts soon after filing its petition in this case. At that
time, petitioner also filed a protective claim for refund of
estate tax for additional administration expenses that it expects
to incur in further defending its position.
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