Estate of Frank A. Branson - Page 23




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          item" as both corpus and income, which sufficed to satisfy the              
          requirements of Bull v. United States.  See Boyle v. United                 
          States, 355 F.2d at 236.                                                    
               The Court of Appeals distinguished Rothensies v. Electric              
          Storage Battery Co., on the grounds that in Rothensies v.                   
          Electric Storage Battery Co., the taxpayer "waited over twenty              
          years to seek a refund",12 and the facts in Boyle were much                 
          closer to the facts in Bull than were the circumstances of the              
          taxpayer in Rothensies v. Electric Storage Battery Co.  See Boyle           
          v. United States, 355 F.2d at 236-237.                                      
               In O'Brien v. United States, supra, decedent's estate paid             
          estate tax on the stock of a closely held corporation, which it             
          valued at $215.7796 per share.  In the year following the                   
          decedent's death, the Government determined a deficiency in the             
          estate tax, asserting a higher value of the stock, and the                  
          taxpayer (one of decedent's heirs) filed a petition to the Tax              
          Court.  While the valuation issue was pending, the corporation              
          was liquidated, and, for the purpose of calculating the resulting           
          capital gain reportable on his income tax return, the taxpayer              
          used the value of the shares reported on the estate tax return.             
          The Government did not dispute this valuation and accepted the              
          payment of income tax on the gain arising from the liquidation.             


               12Thus, the Court of Appeals for the Third Circuit indicated           
          that in any equitable claim, an equitable defense, such as                  
          laches, may bar the claim.                                                  




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