Noncitizen who died abroad was a U.S. resident for estate tax purposes

Article Abstract:

The estate of a Pakistani citizen who obtained a visa and green card in 1985 and was regarded as a resident alien in the US was not subjected to the limited $13,000 credit under estate tax regulations. While the IRS argued that the decedent was no longer a US resident at the time of his death, the Tax Court ruled that, although the decedent died five years after returning to Pakistan on business in Dec 1986, his move to California in 1985 had already proven his intent to live in the US permanently. The Court further ruled that this intent was not affected by his having filed nonresident alien tax returns. The decedent even attempted to return to the US prior to his death, as evidenced by his application for a US reentry permit. However, failing health had prevented him from using his application for reentry.

Public Finance Activities, Property Taxes, Taxation, Decedents' estates, Estate tax, Estate taxes, United States. Internal Revenue Service, Non-resident aliens, Nonresident aliens

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Petition had no effects on limitations period ended by assessment

Article Abstract:

The Fourth Circuit ruled in 'Ripley' that the extension of the limitations period for assessing a tax deficiency under Sec. 6501(a) ended upon the assessment of a tax increase and not affected by the suspension of the original limitations period. The case involved a mother who made a gift of real property to her son and daughter-in-law and then filed the appropriate gift tax return and paid the appropriate tax. The general three-year period for assessing a tax deficiency was extended by agreement between the mother and the IRS written on a Form 872. The Fourth Circuit rejected the IRS's arguments and reversed the Tax Court's decision. It upheld the taxpayers' position that the extension agreement ended on the assessment date on Apr. 7, 1992, and not on Oct. 1, 1992 as the IRS and the Tax Court contended.

Tax assessment

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