- 15 -
OPINION
The Internal Revenue Code imposes a Federal estate tax on
the transfer of the taxable estate of a decedent who is a citizen
or resident of the United States. Secs. 2001 and 2002. Section
2053(a)(3) allows a deduction from the gross estate for claims
against the estate that are allowable by the laws of the
jurisdiction under which the estate is administered. The issue
for decision in the instant case is the value of Exxon’s claim
against the estate as of decedent’s date of death for purposes of
determining the amount of the estate’s section 2053(a)(3)
deduction.
Burden of Proof
Before the trial on remand, the estate filed a Motion to
Place Burden of Proof on Respondent. The estate argued that the
Court of Appeals for the Fifth Circuit rejected respondent’s
presumption of correctness and that the burden had shifted to
respondent to prove the existence and amount of the deficiency.
We denied the estate’s motion prior to the trial on remand.
The Court of Appeals said nothing about rejecting
respondent’s presumption of correctness. Rather, the Court of
Appeals said: “it is incumbent on each party to supply the Tax
Court with relevant evidence of predeath facts and occurrences
supporting the value of the Exxon claim advocated by that party.”
Estate of Smith v. Commissioner, supra at 526. As explained
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011