William D. Little - Page 1

                                   113 T.C. No. 31                                    

                               UNITED STATES TAX COURT                                

                          WILLIAM D. LITTLE, Petitioner v.                            
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 24598-97.                Filed December 29, 1999.           

                    P was the personal representative of D’s estate.                  
               During administration of the estate, P received                        
               information indicating possible income tax liabilities                 
               of the estate.  P gave this information to the estate’s                
               lawyer, who erroneously and repeatedly advised P that                  
               the estate had no tax liabilities and advised P to make                
               disbursements and distributions.  P, acting in good                    
               faith, followed this advice and eventually closed the                  
               estate without paying the estate’s income tax                          
               liabilities.  R determined that P is liable for the                    
               estate’s unpaid income tax liabilities under 31 U.S.C.                 
               sec. 3713(b) (1994), which generally imposes personal                  
               liability on a fiduciary who pays others before paying                 
               claims of the United States.  Liability under 31 U.S.C.                
               sec. 3713(b) has been judicially limited to situations                 
               where a fiduciary knowingly disregards debts due to the                
               United States.                                                         

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