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the overpayments of tax claimed on the amended fiduciary income
tax return and decedent's amended income tax return, as finally
adjusted, would be used to offset the deficiency in estate tax in
that case.
Based on the above-described adjustments in Estate of
Donn D. McMorris v. Commissioner, supra, decedent's amended 1991
Federal income tax return reflected a loss from the redemption of
the NW stock, rather than the gain previously reported, and
certain dividend income previously reported was eliminated. A
refund of $3,330,778 of decedent's 1991 Federal income taxes was
approved by respondent. Due to the large amount of the refund,
it was subject to review by the Joint Committee on Taxation.
Petitioner's refund claim was reported to the Joint Committee on
October 30, 1997. The 30-day period for review passed without
objection. As of December 16, 1997, the closing of the record in
this case, neither an amended 1991 Colorado income tax return nor
a protective claim for refund had been filed with the Colorado
Department of Revenue.
Respondent's amended answer requests an increased deficiency
in estate tax based on a reduction of the amounts claimed as
debts of decedent for 1991 Federal and Colorado income taxes.
Discussion
Section 2053(a)(3) provides that the value of the taxable
estate shall be determined by deducting from the value of the
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