-6-
section 6651(a)(1) and (2) of $340,070.40 and $130,028.16,
respectively, and related interest of $192,962.20.
As of the date of decedent’s death, the estate held assets
with an aggregate value in excess of $9 million. After the
estate tax return was filed, the estate paid the following
amounts toward its tax liability: $500,000 on April 29, 2002,
$500,000 on May 13, 2002, and $104,386.20 on June 11, 2002. The
coadministrators obtained the funds to make these three payments
by refinancing some of the estate’s real property. These three
payments paid the balance of the estate tax shown as due on the
return, plus the assessed interest.
Seltzer knew there was a deadline to file the estate tax
return and that an extension of time had been obtained for filing
that return. Seltzer did not ascertain the extended due date for
the return or attempt to ascertain the extended due date from
anyone other than Gershon but was content to rely on Gershon to
file the estate tax return timely. Seltzer’s habit was to
satisfy obligations immediately, and when the estate tax return
was being prepared, Seltzer made sure that the bills of DPM and
GlenLee were paid. Seltzer was in good health throughout the
time that the estate tax return was under preparation.
6. The Audit of The Estate Tax Return
Respondent audited the estate tax return and proposed a
deficiency of $53,790 and an addition to tax of $13,447.46 under
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