Estate of Michael J. Thomas - Page 17




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          return by giving only tentative values pending the outcome of the           
          litigation.  In such situations, reasonable estimates are                   
          permitted and are preferable to the failure to file the estate              
          tax return within the prescribed time.  Id.                                 

               For decedents dying in the year 1986, the threshold                    
          requirement for filing a Federal estate tax return was a gross              
          estate exceeding $500,000.  Sec. 6018(a)(1), (3).6  On January 6,           
          1987, approximately 6 weeks after the due date of the estate tax            
          return, the executrix filed an inventory with the probate court             
          that listed an aggregate value of assets in decedent's estate of            
          $600,147.33.  It is notable that the $600,147.33 value in this              
          inventory did not include the values of other listed assets: (1)            
          150 shares of H.R.M., Inc., (2) 182 shares of Thomas, Inc., (3)             
          52 shares of Uncle Henry's, Inc., and (4) an interest in the                
          Thomas Trust.  Rather, the values of these assets were listed as            
          "unknown".                                                                  

               It is clear to this Court that, at some time prior to the              
          due date for filing the estate tax return, the executrix knew or            
          should have known that the value of decedent's gross estate                 


               6    The estate makes assertions on brief that the value of            
          decedent's estate after taking into account marital deductions              
          would have fallen below the filing threshold.  This argument                
          ignores the fact that the estate tax return filing requirement is           
          based on a gross estate figure rather than a taxable estate.  The           
          marital deduction is taken into account only with respect to the            
          taxable estate.  Secs. 2031, 2051, 2056.                                    





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