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gain recognized on the sales of the shares due to the lower
values reported on the estate tax return. Estate of Bartels
v. Commissioner, 106 T.C. 430 (1996); Estate of Mueller v.
Commissioner, 101 T.C. 551 (1993), followed.
Robert A. Mills, Marco L. Quazzo, and Mary Catherine Wirth,
for petitioner.
Rebecca T. Hill, Bryce A. Kranzthor, and Elizabeth
Groenewegen, for respondent.
OPINION
PARR, Judge: In Estate of Branson v. Commissioner, T.C.
Memo. 1999-231 (Branson I), we redetermined the increased value
of the shares of Savings Bank of Mendocino County (Savings) and
Bank of Willits (Willits) included in decedent's gross estate.
We now consider whether this Court has authority to apply
equitable recoupment in light of the opinion of the Court of
Appeals for the Sixth Circuit in Estate of Mueller v.
Commissioner, 153 F.3d 302 (6th Cir. 1998), affg. on other
grounds 107 T.C. 189 (1996), and if so, whether petitioner is
entitled under that doctrine to credit for the taxes paid by the
residuary legatee on the excessive gain recognized from the sales
of the shares due to the lower values provided by the estate tax
return. Following our opinions in Estate of Bartels v.
Commissioner, 106 T.C. 430 (1996), and Estate of Mueller v.
Commissioner, 101 T.C. 551 (1993), we hold that this Court has
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