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that the Commissioner raised as a “new matter” for which the
Commissioner should bear the burden of proof.
In the instant case, respondent identified both the legal
and factual bases for his determination, stating, inter alia, in
the notice of deficiency:
It is determined that the decedent/guardian transferred DAS,
Tyngsboro Family Limited Partnership for less than adequate
and full consideration in money or money’s worth and that
the decedent, through the guardian, retained an interest in
the asset. Therefore, pursuant to I.R.C., section 2036, the
fair market value of the asset is includible in the
decedent’s gross estate. Accordingly, the taxable estate is
increased by $1,100,000.00.
Under that same reasoning, respondent determined that the full
fair market values of the DAC FLP and the RMA FLP, $1.1 million
and $581,000,22 respectively, should also be included in
decedent’s taxable estate. Despite the estate’s protestations on
brief, it is clear that the estate understood the basis of
respondent’s determination. For example, in paragraph 4 of the
petition, the estate states:
(a) The Commissioner erred in reclassifying the Decedent’s
thirty three and one third percent (33.3%) interest in the
DAS Tyngsboro Family Limited Partnership (“DAS”) originally
returned at a value of $238,333.00 on Schedule F, Item 3 of
the Estate Tax Return. The Commissioner has taken the
position in his reclassification that 100% of the DAC Family
Limited Partnership is to be included on Schedule G of the
Estate Tax Return. The Commissioner further errs in valuing
the 100% interest in DAC at more than $238,333.00. * * *
And in paragraph 5 of the petition, the estate states:
22See supra note 20.
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