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pay the estate tax timely. Mr. Renbarger counters that the
Internal Revenue Code mandates that State estate taxes actually
be paid before Federal estate taxes. We disagree with Mr.
Renbarger’s characterization of the Code. Section 2011(c)(2)
allows a credit for State estate taxes up to 4 years after the
filing of the Federal estate tax return or up to the expiration
date of any section 6161 extension of time to pay. See Howard v.
United States, 40 F. Supp. 697 (E.D. La. 1941) (courts cannot
extend this period), affd. on other grounds 125 F.2d 986 (5th
Cir. 1942).
Mr. Renbarger also asserts but did not substantiate that
respondent’s Appeals Office advised him to pay State estate taxes
before Federal estate taxes so the estate might receive the
section 2011 credit for State estate taxes paid. As respondent
correctly points out, the estate had already begun paying State
estate tax before the purported advice. Any advice therefore
could not have been given before the payment due date because
respondent did not commence examination of the estate’s Federal
estate tax return until May 14, 2001. Consequently, Mr.
Renbarger makes a disingenuous argument when he claims the advice
influenced his decision to prefer State estate tax payments over
Federal estate tax payments.12
12We are aware of the State estate tax credit phase-out
under sec. 2011. In this case, the estate could credit State
estate tax payments actually paid until approximately February
2004, 4 years from the date it filed its Federal estate tax
(continued...)
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