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stipulated that decedent's estate tax return was filed on
February 7, 1997, more than 10 years after the due date of the
return. The parties also agree that the amount of tax shown on
the return was remitted with the return.
The estate admits that it failed to file the estate tax
return timely and failed to pay the estate tax timely. However,
the estate argues that such failures were due to reasonable cause
and not due to willful neglect. The estate first argues that the
executrix was advised by her attorney and her certified public
accountant (CPA) that it would be improper to file an incomplete
estate tax return, and, thus, a return should not be filed until
a determination could be made as to the assets that were to be
included in decedent's estate. Thus, the estate argues, the
executrix was advised to delay preparation and filing of the
estate tax return until the conclusion of the suit surrounding
the Thomas Trust. The estate contends that the filing of the
estate tax return had to be delayed until the common pleas court
issued an order for the distribution of the assets in the Thomas
4(...continued)
failure to pay. For example, the estate did not argue that it
failed to pay due to the lack of funds or liquid assets. Rather,
the estate's argument is that it was entitled to delay both the
filing of the return and payment of the tax for the same reason–-
the uncertainty of the estate's assets. Accordingly, the Court
treats both the failure to file and failure to pay issues
together.
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