In Re Estate of Marcellus L. Joslyn, Deceased. Robert D. MacDonald v. Commissioner of Internal Revenue

This is an appeal from a decision of the Tax Court that was adverse to the executor of the Estate of Marcellus L. Joslyn. Jurisdiction below was based upon section 6214 of the Internal Revenue Code of 1954; this court’s jurisdiction lies pursuant to section 7482 of the Code. The Tax Court’s opinion is reported at 57 T.C. 722 (1972).

Mr. Joslyn died testate, a resident of California, on June 30, 1963. The federal estate tax return for his estate was filed with the District Director of Internal Revenue at Los Angeles, California, on September 30,1964.

At his death, Mr. Joslyn owned 66,099 shares of the common stock of Joslyn Mfg. and Supply Co. The stock was not then listed on any national exchange but was traded on the “over the counter” market. The 66,099 shares were valued on the return at $3,040,554 as of the date of death. Upon audit by the Commissioner of Internal Revenue, the agent proposed an increase in the date-of-death value of the shares to $3,103,697.-43. His computation included an allowance for “blockage” elements in the amount of $366,500.07. These adjustments to the valuation were accepted by the Estate, were not in issue before the Tax Court, and are not in…