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because the executor's election to value the property as of the
alternate valuation date was untimely and therefore invalid.
Respondent determined that the date-of-death value of the
taxable estate, without consideration of the issues conceded by
petitioner, see supra note 1, is $6,399,230,6 including
$6,052,251 as the value of the BFI stock (reflecting the discount
for blockage).
Petitioner asserts that Rev. Proc. 92-85, 1992-2 C.B. 490,
and the regulations provide respondent discretionary authority to
allow the executor to make an untimely election to use the
alternate valuation date, and that the estate qualifies for the
relief provided by the revenue procedure.
Discussion
Issue 1. Whether the Executor May Elect Alternate Valuation Date
Treatment for the Estate
In general, a decedent's gross estate is valued for Federal
estate tax purposes as of the date of the decedent's death. See
sec. 2031(a).7 However, if the executor so elects, the value of
the gross estate may be determined by valuing all the property
6Respondent's determination reflects the lower date-of-death
value of the estate's other stocks ($4,919).
7SEC. 2031. DEFINITION OF GROSS ESTATE.
(a) General.--The value of the gross estate of the
decedent shall be determined by including to the extent
provided for in this part, the value at the time of his
death of all property, real or personal, tangible or
intangible, wherever situated.
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