Sexton

The taxpayer, Ann Sexton Peterson, executor of the estate of Lucille Abbott Sexton, appeals the Tax Court’s denial of her motion to vacate its decisions of January 23, 2001. These decisions were based on stipulations by the parties. The lawyer for the taxpayer was employed as a consultant by the Internal Revenue Service during the period he represented the estate. Alleging a breach of legal ethics such that the estate had not been properly represented in the settlement, Peterson sought to set the decisions aside. The Tax Court held that there was “no credible evidence” that the lawyer failed to properly represent the estate. We affirm the judgment of the Tax Court.

FACTS

Lucille Abbott Sexton died June 21, 1994. Peterson, her daughter, timely filed a return as her executor'showing liability for estate tax of $68,894. An audit of the return led the IRS on October 1, 1997 to increase the estate tax to, $415,868 and to assess gift tax. ( The deficiencies were based on (1) the IRS’s view that $930,350 from decedent to her daughter, son-in-law, and their real estate partnership were taxable gifts; and (2) the disallowance of a claimed $200,000 deduction for an unsecured note to the…