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States v. Bowcut, 287 F.2d at 656 (the "only act of this taxpayer
[the executrix] which contributed to the circumstance of a double
tax upon the estate was her erroneous return of estate tax
liability"), the taxpayer in Estate of Harrah v. United States,
supra, engaged in several sales transactions with multiple
valuation errors.
In Parker v. United States, 110 F.3d 678 (9th Cir. 1997),
the appellants (sisters) were the two daughters of Eleanor Parker
(mother), who died in 1971. In 1972, the sisters sued Edward
Allison (stepfather), alleging that he had abused his role as a
fiduciary by embezzling funds from the mother's separate assets
and from a testamentary trust created by the mother in 1958 for
the sisters. The suit was settled in 1975 with the stepfather
agreeing in part to create a $325,000 settlement trust. The
income of the settlement trust was to be paid to the stepfather,
and the remainder was to be paid to the sisters upon his death.
The stepfather died in 1985. At the request of the executor
of the stepfather's estate, and over the objections of the
sisters, the trustee paid $90,000 in estate taxes owed by the
stepfather's estate from the corpus of the settlement trust. The
sisters filed a timely claim for refund following the estate tax
payment, which was rejected by the Government. The sisters then
filed suit for refund in the District Court.
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