Friday, July 13, 2007
Steve R. Akers (Bessemer Trust, Dallas, Texas) has written Erickson Extends §2036 to Using Partnership Funds to Pay Decedent’s Estate Taxes for the RPPT, May 2007 issue.
Here is the introduction:
Estate of Erickson v. Commissioner , T.C. Memo 2007-107 is another §2036 victory for the IRS in a “terrible facts” case. The case is particularly interesting in that the retained enjoyment of the partnership was the use of partnership funds to pay estate taxes (albeit through the purchase of an estate asset and a redemption of part of the estate’s interest). However, the case was surrounded with other facts that made readily apparent that the only purpose of the partnership was to try to secure an estate tax discount.