In United States v. Estate of Lillian Beckenfeld, the Tax Court sided with the IRS, upholding that a collection action against an estate was valid. In 2013, Beckenfeld’s estate filed a late gift tax return for the year 2007. Accordingly, the IRS assessed additions to the tax, which added up to $951,411.34. Upon sending in the check to pay additional payments and interest, Beckenfeld’s estate included instructions that the IRS followed but ultimately left the gift tax liability unpaid. After an appeal, the IRS issued a notice, sustaining its intent to levy.
See Dawn S. Markowitz, Collection Action for Late-Filed Gift Tax Return Upheld, Wealth Management, February 6, 2017.
