- 25 -
Section 2055 allows a deduction in computing the taxable
estate for certain transfers for charitable or similar purposes.
In pertinent part, section 2055(a)(3) allows a deduction for
bequests to:
a fraternal society, order, or association operating
under the lodge system, but only if such contributions
or gifts are to be used * * * exclusively for
religious, charitable, scientific, literary, or
educational purposes, or for the prevention of cruelty
to children or animals [hereafter, without distinction,
charitable purposes] * * *
On brief, petitioners argue: “Since there is no evidence in
the record that these organizations did not use the bequests for
the purposes set forth in the statute the Respondent’s denial of
the charitable deduction taken by the Estate on the federal
estate tax return is without foundation.”
Clearly petitioners recognized their obligation to prove the
exclusive charitable purposes for which the $22,000 bequests were
to be used. Petitioners failed to introduce any letter of intent
or other evidence on point and, thus, have failed to carry their
burden. Cf. First Natl. Bank of Omaha v. United States, 681 F.2d
534, 541-542 (8th Cir. 1982) (Masonic organization cannot be said
to be operated exclusively for charitable purposes); First Natl.
Bank in Dallas v. Commissioner, 45 F.2d 509 (5th Cir. 1930)
(unrestricted bequests to Masonic organizations not organized
exclusively for charitable purposes did not qualify for
charitable deduction); McReynolds v. Commissioner, 1 B.T.A. 815
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011