113 T.C. No. 2
UNITED STATES TAX COURT
ESTATE OF FRANK A. BRANSON, DECEASED,
MARY M. MARCH, EXECUTOR, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 10028-95. Filed July 13, 1999.
P reported the date-of-death fair market values of
the stock of S and W as $181.50 and $485, respectively,
per share. P sold some of the S stock for $335 per
share and all the W stock for $850 per share. The gain
realized on the sales by P was distributed to the
residuary legatee, M, who reported the gain on her
Federal income tax return and paid the income tax due.
R determined a deficiency in P's estate tax liability.
R's determination was based on his assertion that at
the date of death the fair market values of the S and W
shares were $300 and $850, respectively, per share. In
Estate of Branson v. Commissioner, T.C. Memo. 1999-231,
we found that the date-of-death fair market values of
the S and W shares were $276 and $626, respectively. P
asserts that it is entitled to equitable recoupment of
the income tax overpaid by M, the refund of which is
barred by the statute of limitations.
Held, under the doctrine of equitable recoupment, P is
entitled to a credit for the income tax overpaid by M on the
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