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Contentious litigation between the siblings over decedent’s
estate ensued and remained unresolved as of at least mid-2006.
Tax Court Proceedings
A timely petition disputing the notice of deficiency was
filed with this Court on April 14, 2004. Both in the petition
and in subsequent stipulations the estate has conceded: (1) That
an additional $975 of interest income was received by decedent in
2000 but not reported on her original return, and (2) that the
sales of eConnect shares during 2000 did not qualify for long-
term capital gain treatment. Following a 2-day trial in November
of 2005, the parties filed posttrial briefs. Respondent on
opening brief conceded the accuracy-related penalty under section
6662(a) asserted in the notice of deficiency. Accordingly, none
of the specific adjustments made in the notice of deficiency
remain in dispute. The estate, however, continues to propound
the argument first raised during the audit that the estate is
entitled to report only one-half of the capital gain generated by
the eConnect sales and, correspondingly, to receive a refund in
the approximate amount of $21,000.2
Simultaneously with the filing of its reply brief on
June 8, 2006, the estate filed a motion to reopen the record for
2 The Court notes that to the extent that the petition seeks
reasonable administrative and/or litigation costs pursuant to
sec. 7430, any such claim is premature and will not be further
addressed. See Rule 231.
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