Pfeiffer

MEMORANDUM AND ORDER

This is an action for refund of estate taxes allegedly overpaid and penalty plus interest assessed for late filing of an estate tax return. The action is brought by Viola Pfeiffer, as executrix of the estate of her late husband, Fred M. Pfeiffer. The court has jurisdiction under Title 26 U.S.C.A. Sec. 7422 and Title 28 U.S.C.A. Sec. 1346 (a) (1).

Some of the issues presented in this case were resolved by this court on motion for summary judgment. In its Memorandum and Order of March 18, 1969 the court refused to grant summary judgment as to two issues which are now presented for consideration:

(1) Is the statutory obligation imposed on the estate by Sec. 205 of the California Civil Code in favor of the State Department of Mental Hygiene for the future care of deceased’s daughter in a state institution a deductible “claim against the estate” under Sec. 2053(a) (3) of the Internal Revenue Code?, and

(2) was the failure of the executrix to timely file the estate tax return due to “reasonable cause” sufficient to escape the penalty contemplated by Sec. 6651(a) of the Internal Revenue Code?

I. Claim of the State Department of Mental Hygiene

Fred M. Pfeiffer…