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being closed. Petitioner was then advised by Mr. Lahr that there
was no tax liability to be paid by the estate and that it was
appropriate to pay out the remaining funds in the estate and to
close the probate case. After receiving Mr. Dilg's and Mr.
Lahr's advice, petitioner used the remaining assets of the estate
to pay priority claims against the estate, and the estate was
closed. In October 1995, a Statement of Account and Proposed
Final Distribution, signed by petitioner and Mr. Lahr, was filed
in the Probate Court of the Circuit Court, State of Missouri,
which showed that all assets of the estate had been distributed
and stated: "All claims, expenses of administration and taxes
have been paid in full."
On September 23, 1997, respondent determined that petitioner
was liable for income taxes and additions to tax due from the
estate and mailed a notice of liability to petitioner.
OPINION
Respondent argues that under 31 U.S.C. section 3713(b),
petitioner is personally liable for the estate’s unpaid income
tax liabilities. Title 31 U.S.C. section 3713 provides:
Section 3713. Priority of Government claims
(a)(1) A claim of the United States Government
shall be paid first when–
* * * * * * *
(B) the estate of a deceased debtor, in
the custody of the executor or administrator,
is not enough to pay all debts of the debtor.
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