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Trust, so that the estate tax return would reflect an accurate
reporting of the assets of decedent's estate.
The estate maintains that its inability to determine the
amount and value of Thomas Trust assets that may or may not have
been eventually distributed to the estate was beyond its control
and did not result from a deliberate or conscious choice on its
part, and, thus, the failure to file the return timely was not
willful. Moreover, the estate argues that the executrix was an
elderly housewife, unsophisticated in the handling of estate tax
matters, and, thus, her reliance on the advice of her attorney
and her CPA constituted reasonable cause for the late filing of
the estate tax return.
Conversely, respondent argues that the additions to tax were
properly assessed and determined, respectively, because the
executrix had a nondelegable duty to file a timely tax return and
to pay the tax, a duty which she failed to perform due to lack of
ordinary business care and prudence. Respondent argues further
that lack of information, pending litigation, and the executrix's
reliance on the advice of her attorney and CPA did not establish
reasonable cause for those failures. Respondent contends that
the estate should have filed a timely estate tax return and
timely paid the tax shown thereon based on the best information
available at the time of the due date of the return. For reasons
set forth herein, the Court agrees with respondent that the
estate is liable for the additions to tax.
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Last modified: May 25, 2011