- 6 -
of the United States Bankruptcy Code. On September 12, 1997,
counsel for Royal Banks filed a notice of appearance in the
voluntary bankruptcy case.
Decedent’s Estate Tax Return
On November 9, 1998, the estate filed a Form 706, United
States Estate (and Generation-Skipping Transfer) Tax Return,
reporting a gross estate of $3,331,853. The estate included
decedent’s 3,276 shares of RBI stock in the gross estate at an
estate tax value of $163,800, or $50 per share. The estate
claimed a charitable contribution deduction of $1,565,678 for the
bequest to the Lubin-Green Foundation. On Schedule R,
Generation-Skipping Transfer Tax, the estate reported the
property transferred in trust to decedent’s grandchildren as a
direct skip with an estate tax value of $1,565,678. In reporting
these amounts, the estate allocated and charged all estate
(Federal and Missouri) and GST tax to the portion of the estate
that passed in trust to decedent’s grandchildren.
Notice of Deficiency
On August 30, 1999, respondent commenced an examination of
the estate and GST tax return. By notice of deficiency,
respondent determined a $1,205,541 deficiency in the estate and
GST tax. Respondent determined that at the date of decedent’s
death the fair market value of the 3,276 shares of RBI stock was
$1,048,320, rather than $163,800, as shown on the estate’s tax
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