Estate of Helen Moore Quirk v. Commissioner of Internal Revenue

This estate tax problem developed after the executor of the estate of Helen Moore Quirk received a statutory notice of deficiency in the estate’s tax return in the sum of $135,210, and an additional penalty assessment of 50 percent of the underpayment for alleged fraud. Internal Revenue Code of 1954, section 6653(b), 26 U.S.C. §§ 6653 (b). A statement was attached which showed the underpayment resulted from the Commissioner’s recomputation of the taxable estate from $21,250 to $472,766. A timely petition by the estate for redetermination of the deficiency was filed in the Tax Court concluding with a prayer that the court determine (1) that there was no deficiency in estate tax and (2) that petitioner be given such other and further relief as might be appropriate.

An answer was not filed by respondent Commissioner within the time allowed, and his request for late filing was denied. Twice more the Commissioner applied for leave to file a late response, and each time the request was denied. Estate of Helen Moore Quirk v. Commissioner, 60 T.C. 520 (1973); Order (unpublished) Estate of Helen Moore Quirk v. Commissioner, 61 T.C. 95 (1973). In a later opinion in Rea v.…