Estate of Marie A. Bies - Page 9

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            erroneous.  See Rule 142(a);4 Welch v. Helvering, 290 U.S. 111,                            
            115 (1933).                                                                                
                  Section 2001(a) provides that a tax is imposed on the                                
            transfer of the taxable estate of every decedent who is a citizen                          
            or resident of the United States.  The tax imposed is equal to                             
            the excess of a tentative tax computed on the sum of the taxable                           
            estate and the adjusted taxable gifts over the aggregate amount                            
            of tax that would have been payable with respect to gifts made by                          
            the decedent after December 31, 1976, using the unified rate                               
            schedule in effect at the date of death.  See sec. 2001(b).  The                           
            term "adjusted taxable gifts" means the total amount of the                                
            taxable gifts (within the meaning of section 2503) made by the                             
            decedent after December 31, 1976, other than gifts which are                               
            includable in the gross estate.  See id.                                                   
                  In general, a tax is imposed for each calendar year on the                           
            transfer of property by gift by any individual, whether the gift                           
            is made directly or indirectly.  See secs. 2501(a), 2511(a).  The                          
            term "taxable gifts" means the total amount of gifts made during                           
            the calendar year, less certain deductions.  See sec. 2503(a).                             
            However, the first $10,000 of gifts of a present interest in                               

                  4Rule references are to the Tax Court Rules of Practice and                          
            Procedure.  All section references are to the Internal Revenue                             
            Code in effect for the date of decedent's death, unless otherwise                          

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