Estate of Sylvia Gore, Deceased, Pamela Powell, Personal Representative - Page 4




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          reflects an increased deficiency over the amount determined in              
          the estate tax notice of deficiency because in calculating the              
          estate tax deficiency in the notice, respondent claims, he                  
          erroneously allowed a $1,183,029 gift tax deduction.4  Respondent           
          argues that no gift tax liability existed because decedent’s                
          transfer of the Marital Fund assets to the Gore Family Limited              
          Partnership (GFLP) was incomplete for gift tax purposes.                    
          Respondent contends that in Estate of Gore v. Commissioner, T.C.            
          Memo. 2007-169, we held that the alleged transfer did not                   
          constitute a gift because decedent did not relinquish control               
          over the Marital Fund assets.  In addition, respondent argues               
          that the decision in the gift tax case, which petitioner                    
          stipulated, reflects that petitioner had no gift tax deficiency             
          and provides that all gift tax payments be credited against                 
          petitioner’s estate tax deficiency.  Removing the gift tax                  
          deduction from his computation and incorporating certain credits            
          and deductions claimed by petitioner,5 respondent determined an             


               4 Respondent apparently assumed that the gift tax deficiency           
          that was the subject of the gift tax case would be sustained by             
          this Court and calculated the gift tax deduction accordingly.               
          Though the deduction has turned out to be erroneous, at the time            
          of its allowance it was consistent with respondent’s position in            
          the gift tax case.  It seems that respondent’s error, if he                 
          committed any, was in not taking an inconsistent position in the            
          estate tax case to protect the revenue.                                     
               5 In his determination, respondent found that petitioner had           
          not substantiated the $20,814 claimed as executor’s fees or                 
          $55,000 of the $284,406.50 petitioner claimed as death taxes paid           
                                                             (continued...)           





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