Estate of Algerine Allen Smith - Page 3




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                                     Background                                       
               On June 4, 1997, we issued our opinion in the estate’s                 
          consolidated cases.2  See Estate of Smith v. Commissioner, 108              
          T.C. 412 (1997).  Our prior opinion dealt with respondent’s                 
          disallowance of part of a deduction for a claim against the                 
          estate under section 2053(a)(3).  See id. at 413.  We sustained             
          respondent’s estate tax deficiency determination because we found           
          that the proper valuation of the claim against the estate by                
          Exxon Corporation (Exxon) required consideration of the                     
          settlement of the Exxon claim that occurred after decedent’s                
          death.3  See id. at 425.  Our holding with respect to the estate            
          tax deficiency disposed of the need to address respondent’s                 
          income tax deficiency determination.  See id. at 425 n.13.                  
          Pursuant to our opinion, the parties filed separate computations            
          under Rule 155.  On January 12, 1998, we issued a supplemental              
          opinion resolving a disagreement between the parties with respect           
          to their computations.  See Estate of Smith v. Commissioner, 110            
          T.C. 12 (1998).  On March 31, 1998, the estate paid $646,325.76,            


               2Our original opinion consolidated two cases of the estate,            
          one dealing with an income tax deficiency determination (docket             
          No. 3976-95) and the other dealing with an estate tax                       
          deficiency determination (docket No. 19200-94).  The asserted               
          income tax deficiency was an alternate position taken by                    
          respondent in the event we rejected his position in the estate              
          tax deficiency determination.                                               
               3We found that the validity and the enforceability of the              
          claim against decedent were uncertain as of the date of death.              
          See Estate of Smith v. Commissioner, 108 T.C. 412, 425 (1997).              




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