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accuracy-related penalty under section 6662(a).1 Following
concessions, we decide whether Concetta H. Rector (decedent)
retained the possession or enjoyment of, or the right to the
income from, property transferred to Rector Limited Partnership
(RLP) for purposes of section 2036(a)(1). We hold she did.2 We
also decide whether decedent’s estate (estate) is liable for an
accuracy-related penalty under section 6662(a) for failure to
include as adjusted taxable gifts on the Federal estate tax
return prior gifts of $595,000. We hold the estate liable for
the penalty.
FINDINGS OF FACT
1. Preface
Some facts were stipulated and are so found. The
stipulation of facts and the accompanying exhibits are
incorporated herein by this reference. Decedent was a resident
of the State of Nevada when she died testate on January 11, 2002,
at the age of 95. Decedent’s son, John M. Rector II (John
Rector), is coexecutor of decedent’s estate. When the petition
was filed, John Rector resided in Sonoma County, California.
1 Unless otherwise indicated, section references are to the
applicable versions of the Internal Revenue Code, Rule references
are to the Tax Court Rules of Practice and Procedure, and dollar
amounts are rounded.
2 Given this holding, we do not consider respondent’s other
arguments in support of respondent’s determination that the value
of the property is includable in decedent’s gross estate.
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