In 1972, Billion Sumner Redstone apparently made a gift to his children but did not file a gift tax return. Now, 41 years later, the IRS is claiming that he owes them $1.1 million in taxes and penalties, plus interest. According to Bloomberg, this “case involves stock in the family’s National Amusements Inc. received by Redstone’s son, Brent, and his daughter, Shari, after the settlement of an intrafamily lawsuit.” Some estate and gift taxes attorneys have alleged that this is unprecedented; however, the statute of limitations does not apply here because Redstone did not file a gift tax return in 1972. Instead, Redstone argues that the transaction was not a gift at all. He argues that it was was transaction made in the ordinary course of business. According to Bloomberg, “the case is Redstone v. Commissioner, T.C., No. 008097-13.”
See Richard Rubin, Billionaire Redstone Challenges IRS on Tax for 1972 Gift, Bloomberg, May 1, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
