Mason v. United States

• Decision Date: 15 December 1926
• Docket Number: No. 363 E.,363 E.
• Citation: 17 F.2d 317
• Parties: MASON et al. v. UNITED STATES.
• Court: U.S. District Court — Southern District of Florida

17 F.2d 317 (1926)

MASON et al. v. UNITED STATES.

No. 363 E.

District Court, S. D. Florida.

December 15, 1926.

J. T. G. Crawford, of Jacksonville, Fla., for petitioners.

William M. Gober, U. S. Atty., of Tampa, Fla., Francis L. Poor, Asst. U. S. Atty., of Jacksonville, Fla., A. W. Gregg, Gen. Counsel, Bureau of Internal Revenue, and Wm. T. Sabine, Jr., Sp. Atty., Bureau of Internal Revenue, both of Washington, D. C., for the United States.

CALL, District Judge.

This cause comes on for final hearing upon the petition of the administrators cum testamento annexo of the last will of Harry Mason, deceased, the answer of the government, and the testimony and exhibits.

The petition alleges the death of Harry Mason testate, November 5, 1919; the appointment and qualification of Bessie Mason as executrix; the death of Bessie Mason and the appointment of petitioners as administrators with the will annexed; that the executrix duly filed final return with the collector of revenue of the property of the estate; that included in said return is the interest of Harry Mason in the Mason Hotel Companies, an unincorporated business, of the true value of $329,635.16; that said interest is represented by 1,000 shares out of a total of 1,500; that the sum of said schedule was increased by the proper officers, by adding thereto a sum equal to the determined value ($168,114.85) of the remaining 500 shares of Mason Hotel Companies, upon the ruling by said officers that said 500 shares had been disposed of by Harry Mason in contemplation of death and/or to take effect in possession at the death of said Harry Mason, within the intent and meaning of subdivision (c) of section 402 (section 6336¾c, Compiled Statutes) of the act of Congress; that the estate tax assessed by the Commissioner of Internal Revenue was the sum of $21,030.34, whereas the true amount of said tax was $11,795.63; that the tax, together with interest thereon, was paid to the collector of internal revenue on January 5, 1925, amounting to $26,287.93; that said 500 shares were given absolutely to said Bessie Mason by said Harry Mason, and possession thereof delivered, on November 10, 1915, and thereafter until her death she enjoyed full and absolute ownership thereof; that petitioners are entitled to recover $9,234.71, with interest thereon from November 20, 1920. The petition then alleges the proceedings required to authorize a recovery and that the then collector of internal revenue is no longer such collector.

The respondent answered, admitting the return by the executrix; that the value of the 500 shares was added to the estate by the Commissioner, on the ground that said 500 shares had been transferred to Bessie Mason in contemplation of death, within the...