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the part of the attorney who represented the estate and executed
the decisions as the estate’s legal representative. In
particular, the estate, which is represented by new counsel,
contends that its former counsel had a conflict of interest
because he was employed by respondent concerning a different case
at the same time he was representing the estate and executed the
agreed decision documents. Respondent contends that the
circumstances we consider do not warrant the vacating of the
decisions.
FINDINGS OF FACT2
Lucille Abbott Sexton (decedent) died on June 21, 1994. A
Form 706, United States Estate (and Generation-Skipping Transfer)
Tax Return, was timely filed. The estate did not report any
taxable gifts or any debt owed to decedent by decedent’s daughter
(Ann Peterson), son-in-law (Bruce Peterson), or their partnership
(Peterson Properties). Further, it was contended by the estate
that decedent had a 20-percent interest in the partnership and
that she owed the partnership $200,000, as evidenced by an
unsecured note. The $200,000 note was claimed as a debt of
decedent on the estate tax return.
During February 1996, respondent notified the estate that it
was to be examined and the estate retained, as its
2 The parties’ stipulation of facts is incorporated by this
reference.
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