- 10 -
value of JM common and preferred stock to $2.25 and $1,
respectively. The estate agreed to these changes.5
Deficiency Amount
Cyril died testate on June 8, 1988, in San Francisco,
California. Donald Isaac Magnin, Cyril’s oldest son, is the
executor of Cyril’s estate, and he filed a timely Federal estate
tax return. The estate tax return identified the 1951 Agreement
and stated that Cyril received adequate and full consideration
under the Agreement.
In the notice of deficiency, respondent determined a
deficiency of $1,921,528 in Federal estate tax. The deficiency
was based in large part on respondent’s determination that the
5The parties stipulated that the estate and gift tax returns
and the document setting forth the agreed-upon adjustments
related to Joseph’s estate tax return were “authenticated and are
admissible in evidence”. Rule 91(d) requires that “Any objection
to all or any part of a stipulation should be noted in the
stipulation, but the Court will consider any objection to a
stipulated matter made at the commencement of the trial or for
good cause shown made during the trial.” Additionally, “It is a
fundamental rule of evidence that an objection not timely made is
waived.” United States v. Jamerson, 549 F.2d 1263, 1266-1267
(9th Cir. 1977); Fed. R. Evid. 103(a)(1). In its reply brief,
the estate argues for the first time that the document setting
forth the agreed-upon adjustments related to Joseph’s estate tax
return is inadmissible to establish values under Rule 143(a) and
Fed. R. Evid. 408. By failing to make a timely and specific
objection on the basis of Fed. R. Evid. 408, the estate waived
its right to contest the admission of Joseph’s estate tax
settlement on that ground. See Gilbrook v. City of Westminster,
177 F.3d 839, 859 (9th Cir. 1999). Furthermore, the estate’s
objection to a stipulated document which the estate agreed was
authenticated and admissible is untimely, and we decline to
consider it. See Rule 91(d); Pan Am. Acceptance Corp. v.
Commissioner, T.C. Memo. 1989-440.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011