- 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. 815Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011