Jouris v. Comm'r of Internal Revenue (In re Estate of Bartels), No. 13886–90.
| Court | United States Tax Court |
| Writing for the Court | TANNENWALD |
| Citation | 106 T.C. No. 24,106 T.C. 430 |
| Parties | Estate of Gordon H. BARTELS, Deceased, Sally A. Jouris and Thomas G. Bartels, Executors, and Estate of Violet J. Bartels, Deceased, Sally A. Jouris and Thomas G. Bartels, Executors, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. |
| Decision Date | 11 June 1996 |
| Docket Number | No. 13886–90. |
106 T.C. 430
106 T.C. No. 24
Estate of Gordon H. BARTELS, Deceased, Sally A. Jouris and Thomas G. Bartels, Executors, and Estate of Violet J. Bartels, Deceased, Sally A. Jouris and Thomas G. Bartels, Executors, Petitioners,
v.
COMMISSIONER OF INTERNAL REVENUE, Respondent.
No. 13886–90.
United States Tax Court.
June 11, 1996.
[106 T.C. 430]
John E. Pfau, Rockford, IL, for petitioners.
John F. Eiman, Houston, TX, and Thomas L. Fenner, Katy, TX, for respondent.
Respondent determined deficiencies in, and additions to, the decedents' Federal income taxes as follows:
+-----------------------------------------------------------------------------+
¦Additions to Tax Under I.R.C. ¦ ¦ ¦ ¦ ¦ ¦
¦Secs. ¦ ¦ ¦ ¦ ¦ ¦
+---------------------------------+----+----------+---------+---------+-------¦
¦ ¦Year¦Deficiency¦6653(a) ¦6653(a) ¦6659 ¦
¦ ¦ ¦ ¦(1) ¦(2) ¦ ¦
+---------------------------------+----+----------+---------+---------+-------¦
¦ ¦1981¦$55,681 ¦$2,784 ¦1 ¦$16,704¦
+---------------------------------+----+----------+---------+---------+-------¦
¦ ¦1982¦60,047 ¦3,002 ¦1 ¦18,041 ¦
+-----------------------------------------------------------------------------+
[106 T.C. 431]
After concessions by both parties, the issue remaining for decision is whether, under the doctrine of equitable recoupment, petitioners may offset against their Federal income tax liability an overpayment of estate tax, the claim for which is barred by the statute of limitations.
The case is before us on cross-motions for summary judgment.
All the facts have been stipulated. The stipulation of facts and attached exhibits are incorporated herein by this reference. There being no dispute as to any material fact, this case is ripe for disposition in accordance with the cross-motions of the parties for summary judgment. Rule 121 1; Brotman v. Commissioner, 105 T.C. 141 (1995). For the purpose of such disposition, we set forth the relevant facts.
Petitioners are the estates of Violet J. Bartels (Mrs. Bartels) and Gordon H. Bartels (Mr. Bartels). At the date of Mrs. Bartels' death, October 4, 1982, she was a resident of Rockford, Illinois. At the date of Mr. Bartels' death, May 16, 1989, he was also a resident of Rockford, Illinois.
Sally A. Jouris and Thomas G. Bartels are the duly appointed executors of both estates. They maintained their legal address in Rockford, Illinois, at the time the petition was filed.
Mr. and Mrs. Bartels timely filed a joint U.S. individual income tax return for the 1981 tax year. Following Mrs. Bartels' death in 1982, Mr. Bartels timely filed a joint U.S. individual income tax return for the 1982 tax year, pursuant to section 6013(d)(1).2
[106 T.C. 432]
On March 28, 1990, respondent issued a notice of deficiency for the 1981 and 1982 tax years. The petition herein in respect of such notice was timely filed.
Pursuant to a stipulation of settled issues, petitioners concede liability for the deficiency for the 1981 and 1982 tax years as determined by respondent.
Estate TaxThe estate of Mr. Bartels filed a U.S. Estate and Generation–Skipping Transfer Tax Return, Form 706, with the Internal Revenue Service at Kansas City, Missouri, on February 21, 1990. It reported a total estate tax liability of $3,582,245, which was paid as follows:
+------------------------------+
¦¦February 20, 1990 ¦$3,312,643¦
++------------------+----------¦
¦¦February 20, 1990 ¦109,602 ¦
++------------------+----------¦
¦¦February 20, 1990 ¦80,000 ¦
++------------------+----------¦
¦¦February 21, 1990 ¦80,000 ¦
++------------------+----------¦
¦¦Total Payments ¦$3,582,245¦
+------------------------------+
Respondent assessed the estate tax liability, in the amount of $3,582,245, on April 9, 1990.
On November 18, 1991, respondent assessed a deficiency in estate tax of $94,364, plus statutory interest of $17,094.88. Both amounts were fully paid on September 18, 1991.
On the original estate tax return, the estate did not claim any deduction for debts of the decedent, Mr. Bartels, to respondent for income tax liabilities for the 1981 and 1982 tax years. Thus, on September 14, 1993, the estate filed an amended estate tax return, claiming deductions from the taxable estate for the following:
+-------------------------------------------------+
¦¦1981 Federal income tax and interest¦$132,776.23¦
++------------------------------------+-----------¦
¦¦1982 Federal income tax and interest¦126,385.98 ¦
++------------------------------------+-----------¦
¦¦1981 State income tax and interest ¦3,657.86 ¦
++------------------------------------+-----------¦
¦¦1982 State income tax and interest ¦4,885.50 ¦
++------------------------------------+-----------¦
¦¦Total ¦$267,705.57¦
+-------------------------------------------------+
As a result of the deductions, the amended return showed an overpayment of estate tax in the amount of $108,689.
[106 T.C. 433]
Since the amended return was filed more than 3 years after the original return,...
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Mueller v. Comm'r of Internal Revenue (In re Estate of Mueller), No. 2733–90.
...deficiency, we have authority to apply equitable recoupment. We recently reaffirmed that conclusion in Estate of Bartels v. Commissioner, 106 T.C. 430 (1996). There is less restriction on our overpayment jurisdiction under section 6512(b). Although section 6512(b)(1) does require that the o......
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March v. Comm'r of Internal Revenue (In re Estate of Branson), No. 10028–95.
...gain recognized on the sales of the shares due to the lower values reported on the estate tax return. Estate of Bartels v. Commissioner, 106 T.C. 430 (1996); Estate of Mueller v. Commissioner, 101 T.C. 551 (1993), followed. In Estate of Branson v. Commissioner, T.C. Memo.1999–231 (Branson I......
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Estate of Frank Branson v. Comm'r of Internal Revenue, PETITIONER-APPELLEE
...a deficiency Page 911 "extends to the entire subject matter of the correct tax for the taxable year"); Bartels v. Comm'r, 106 T.C. 430, 435 (1996) (deficiency jurisdiction confers authority to consider defense of If this case had arisen in the district court, which shares with the......
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Merker v. Commissioner, Docket No. 26855-95.
...is dependent on the issuance of a valid notice of deficiency. Sec. 6213(a); Rule 13(a); Estate of Bartels v. Commissioner [Dec. 51,386], 106 T.C. 430, 435 (1996); Levitt v. Commissioner [Dec. 47,692], 73 T.C.M. 3089 97 T.C. 437, 441 (1991). Our jurisdiction does not extend to settling emplo......
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Mueller v. Comm'r of Internal Revenue (In re Estate of Mueller), No. 2733–90.
...deficiency, we have authority to apply equitable recoupment. We recently reaffirmed that conclusion in Estate of Bartels v. Commissioner, 106 T.C. 430 (1996). There is less restriction on our overpayment jurisdiction under section 6512(b). Although section 6512(b)(1) does require that the o......
-
March v. Comm'r of Internal Revenue (In re Estate of Branson), No. 10028–95.
...gain recognized on the sales of the shares due to the lower values reported on the estate tax return. Estate of Bartels v. Commissioner, 106 T.C. 430 (1996); Estate of Mueller v. Commissioner, 101 T.C. 551 (1993), followed. In Estate of Branson v. Commissioner, T.C. Memo.1999–231 (Branson I......
-
Estate of Frank Branson v. Comm'r of Internal Revenue, PETITIONER-APPELLEE
...a deficiency Page 911 "extends to the entire subject matter of the correct tax for the taxable year"); Bartels v. Comm'r, 106 T.C. 430, 435 (1996) (deficiency jurisdiction confers authority to consider defense of If this case had arisen in the district court, which shares with the......
-
Merker v. Commissioner, Docket No. 26855-95.
...is dependent on the issuance of a valid notice of deficiency. Sec. 6213(a); Rule 13(a); Estate of Bartels v. Commissioner [Dec. 51,386], 106 T.C. 430, 435 (1996); Levitt v. Commissioner [Dec. 47,692], 73 T.C.M. 3089 97 T.C. 437, 441 (1991). Our jurisdiction does not extend to settling emplo......