- 10 -
self-explanatory and that a mere reading thereof does not
necessarily establish, or verify, or make clear, the amount of
decedent’s gambling losses for 2000. On the record before us, we
conclude that respondent was reasonable and substantially
justified in seeking additional information and understanding of
the documents provided at the examination office and Appeals
Office before conceding the gambling losses in issue, and it
appears that respondent did not receive that information and
explanation or understanding until shortly before trial.
With regard to decedent’s net worth, the estate argues that
an affidavit of decedent’s surviving wife, who was also executrix
of decedent’s estate, decedent’s bankruptcy filing, and the large
amount of gambling losses decedent incurred in 2000 should
satisfy respondent that as of the January 12, 2002, date of
decedent’s death, decedent’s estate’s net worth was less than $2
million, and therefore that the estate is not precluded under
section 7430(c)(4)(A)(ii) and (D)(i)(I) from receiving an award
of administrative costs.
Based on the $7 million that decedent in 2000 wagered on
slot machines, decedent’s 526 slot machine jackpots averaging
$5,000 each, and decedent’s purchase in 2000 of an automobile
with $10,000 in cash, respondent asserts that the estate should
be required to produce financial records that establish with
greater specificity and credibility the amount of decedent’s
estate’s net worth on the date of death.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011