IRS Argues to Take More of Davidson’s Estate

As I have previously discussed,  the legal battle betweenthe William Davidson’s widow and son versus Jonathan Aaron, co-executor ofDavidson’s estate and president of the William Davidson foundation, and wifeMary continues. Forbes labeled Davidson was the 62nd most wealthy personin the U.S. so it is no wonder why his estate faces so many claims. In additionto the ongoing family legal battle, Davidson’s estate could possibly face a TaxCourt judgment of up to $2.8 billion dollars in estate tax, gift tax, andpenalties that the IRS is claiming the estate has not paid. 

Now, the IRS is arguing that Davidson’schildren had trusts worth millions. Davidson’s attorney argues with the IRS theworth of the trusts. Additionally, the IRS claims that Davidson used “self-cancelling installment notes” so that he could give his decedents somewealth. Moreover, millions were given to Davison’s wife. Some of those fundswere utilized to build her daughter and son in law a home. The IRS labeled thistransaction as a gift, but it is currently in dispute. The IRSclaimed the estate owes $1.9 billion in estate tax and penalties. The IRS alsoasserts deficiencies from 2005 of over $900 million in other taxes the IRS saysshould have been paid. 

See Terri Eyden Death Tax Grasps for More of WIlliam Davidson’s Wealth, Accouting Web, Jul. 25, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.