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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