Estate of Doris F. Kahn, Deceased, LaSalle Bank, N.A., Trustee and Executor - Page 30

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          full fair market value for the securities without any discount.             
          We agree with the Fifth Circuit that “correctly applying the                
          willing buyer-willing seller test demonstrates that a                       
          hypothetical buyer would not consider the income tax liability to           
          a beneficiary on the income in respect of a decedent since he is            
          not the beneficiary and thus would not be paying the income tax.”           
          Estate of Smith v. United States, 391 F.2d at 628.                          
               The estate argues that Estate of Smith was decided under a             
          different theory; i.e., that the case did not consider the                  
          marketability discount argument.  The estate also contends that             
          the reasoning in Estate of Smith fails to understand the nature             
          of IRA accounts.  We have already independently considered and              
          rejected the marketability discount theory.  Further, the                   
          estate’s argument that in general the tax consequences of                   
          distributing the IRAs should be taken into account under the                
          willing buyer-willing seller test was the exact argument                    
          considered by the court in Estate of Smith.  Finally, the                   
          estate’s assertion that Estate of Smith fails to understand the             
          nature of IRAs is contradicted by the estate’s misstatements of             
          the nature of IRAs.                                                         
               B.   Section 691(c)                                                    
               The Fifth Circuit Court of Appeals, as are we, was convinced           
          of the relevance of our holding in Estate of Robinson v.                    
          Commissioner, 69 T.C. at 224, in particular the reasoning                   
          utilizing section 691(c).  In Estate of Robinson, this Court                




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