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(1998) (Colorado taxpayer required to report changes in Federal
taxable income due to final determination by the Commissioner or
to taxpayer's filing amended Federal return). Respondent's
position is that the deduction for the Colorado income tax
liability should be limited to the amount of the State tax on
income properly includable in decedent's Colorado return, which
would reflect the adjustment in decedent's income for Federal
income tax purposes. Petitioner's position is that the entire
amount of the Colorado income tax liability as paid should be
allowed as a deduction because the liability was valid and
enforceable as of the date of decedent's death, thereby
precluding consideration of postdeath events. In the
alternative, petitioner argues that, even if postdeath events are
considered, respondent has not established that a refund of
Colorado tax would be granted.
The same analysis and result apply to the Colorado income
tax claim as apply to the Federal tax liability. Colorado
statutes provide for assessment of deficiencies and for claims
for refunds. Where either the Federal or Colorado income tax
return is challenged, the Colorado income tax may be subject to
change. See Colo. Rev. Stat. sec. 39-22-601(6). Postdeath
events are thus relevant to determining whether the claim is
enforceable.
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