DEDUCTION FOR ESTATES AND TRUSTS ACCUMULATING INCOME OR DISTRIBUTING CORPUS. We turn therefore to that question now, and hold that such deductions are not available to petitioner. The question still remains whether section 651 or 661, as applied to the facts of this case for the years 19, as a matter of law entitles petitioner to the deductions which it claims at this time. Tenn.), affirmed per curiam 411 F.2d 563 (6th Cir.) Chester Farrara, 44 T.C. Wis.), affirmed per curiam 392 F.2d 875 (7th Cir.) Southern Hardwood Traffic Association v. Commissioner, 202 F.2d 112, 115 (2d Cir.) "The mere fact that may have obtained a windfall in does not entitle to like treatment in. 180, 183 Union Equity Cooperative Exchange v. However, in our judgment, the manner of treating these deductions in earlier years is wholly irrelevant, since it has been firmly established that the Commissioner's erroneous treatment of an item in earlier years or his failure to challenge a taxpayer's erroneous treatment does not preclude an examination of the correctness of the treatment of such item for the tax years in issue. We have no further enlightenment on these matters than was available to the Court of Appeals when the case was before it, and, of course, to the extent that the record is deficient in this or any other respect, petitioner must bear the consequences since the burden of proof was upon it. Also, the parties have not presented any additional materials on the remand relating to the so-called maintenance reserve or the Commissioner's failure to challenge the deductions for the years preceding 1966 after the reserve had been depleted.And in remanding the case for consideration of the newly claimed deductions under section 651 or 661, the Court of Appeals also raised the question "whether limitations would bar the present assessment or allocation of amounts to personally." 514 F.2d at 922-923. She would have been required to do this by sections 652 and 662, if the payments had qualified for deductions by the trust as funds distributed to her pursuant to the trust agreement under section 651 or 661." Moreover, the Court of Appeals indicated that it was "unsure of the basis for the Commissioner's action in recognizing for estate tax purposes the creation and amortization of a maintenance reserve fund for Nemours and his failure to challenge the trust's annual maintenance deductions from the time this reserve had been depleted until the 19 tax years." 514 F.2d at 922.
duPont reported any part of these payments as income to her in either tax year.
duPont, it stated ( 514 F.2d at 922): "The record before us does not reveal whether Mrs. Noting a possible relationship between the resolution of this question and the tax liability of Mrs. However, it also considered petitioner's additional contention (raised for the first time in the appellate proceeding) that the trust should be allowed to deduct these amounts under section 651 or 661, which define the tax consequences to a trust of certain transactions between the trust and its beneficiaries. The Court of Appeals affirmed our resolution of both of these issues.
0 kommentar(er)
