- 2 -
(the estate)1 and an addition to tax under section 6651(a)(1)2 of
$276,159. After concessions, the issues for decision are:
(1) Whether the values of the assets Austin and Edna Korby
(Austin and Edna or the Korbys) transferred to the Korby
Properties, A Limited Partnership (KPLP), are includable in the
gross estate under sections 2036 and 2038. We hold that 38.26
percent of KPLP’s value is includable under section 2036(a)(1);
(2) whether the value of an annuity purchased in 1995 is
includable in the gross estate. We hold that it is; and
(3) whether the estate is liable for an addition to tax
under section 6651(a)(1) for failure to timely file a return. We
hold that it is.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts, supplemental stipulation of facts,
second supplemental stipulation of facts, and attached exhibits
are incorporated herein by this reference. At the time the
petition was filed, the mailing address for the estate was in
1Respondent also determined a deficiency with respect to the
estate of Edna Korby’s husband, Austin Korby, who died 5 months
after Edna. The issues concerning Austin’s estate are addressed
in a separate Memorandum Findings of Fact and Opinion of this
Court.
2Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the date of the
decedent’s death, and all Rule references are to the Tax Court
Rules of Practice and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011