Cumulative List of Announcements Relating to Decisions of the Tax Court

Published in the Internal Revenue Bulletin

from January 1, 1978 through December 31, 1978

It is the policy of the Internal Revenue Service to announce in the Internal Revenue Bulletin at the earliest practicable date the determination of the Commissioner to acquiesce or not acquiesce in a decision of the Tax Court which disallows a deficiency in tax determined by the Commissioner to be due.

Notice that the Commissioner has acquiesced or nonacquiesced in a decision of the Tax Court relates only to the issue or issues decided adversely to the Government.

Actions of acquiescences in adverse decisions shall be relied on by Revenue officers and others concerned as con

clusions of the Service only to the ap-
plication of the law to the facts in the
particular case. Caution should be
exercised in extending the application
of the decision to a similar case unless
the facts and circumstances are sub-
stantially the same, and consideration
should be given to the effect of new
legislation, regulations, and rulings as
well as subsequent court decisions and
actions thereon.

Acquiescence in a decision means
acceptance by the Service of the con-
clusion reached, and does not neces-
sarily mean acceptance and approval
of any or all of the reasons assigned by
the Court for its conclusions.

No announcements are made in the Bulletin with respect to memorandum opinions of the Tax Court.

The announcements published in the weekly Internal Revenue Bulletins are consolidated semiannually and annually. The semiannual consolidation appears in the first Bulletin for July and in the Cumulative Bulletin for the first half of the year and the annual consolidation appears in the first Bulletin for the following January and in the Cumulative Bulletin for the last half of the year.

The Commissioner ACQUIESCES in the following decisions:

Taxpayer

Dryer, Samuel A., Est. of, Robert A. Dreyer & Edward L. Dreyer,

Docket No.

Volume Page

Harris Trust & Savings Bank, trustee of the residuary trust created u/w Louis
E. Pfeifer, transferee ✦

Taxpayer

Sparling, Isabelle M., Est. of, Crocker-Citizens National Bank, Trustee * 6 28

Stiles, Fred M. & Jean M.

Tracy, John E. & Evelyn P.

The Commisioner does NOT ACQUIESCE in the following decisions:

Taxpayer

Volume Page

3565-72

Saia, Viola F., Est. of, Seredo J. Saia, executor, & Seredo J. Saia, Transferee *

6350-72

1 Acquiescence in result in the issue relating to whether the taxpayer can be required to inventory costs incurred for losses and research and experiment expenditures where such items are specifically allowed as deductions by the Code.

Acquiescence "in result" means acceptance of the decision of the Court but disagreement with some or all the reasons for the decision.
Acquiescence in the issue relating to whether certain items are excludable from inventory because they are not manufacturing expenses.
Estate Tax decision.

See Rev. Rul. 78-125, 1978-1 C.B. 292.

Gift Tax decision.

7 Acquiescence published in 1976-2 C.B. 3 is withdrawn and acquiescence in result is substituted. (See footnote 2)

8 Acquiescence published in 1964-1 C.B. 4 in the issue relating to whether a "wage dividend" death benefit paid to decedent's widow in the year following decedent's death is includible in decedent's gross estate under section 2039, and in the issue relating to whether a "salary" death benefit paid to decedent's widow is includible in decedent's gross estate under section 2039, is withdrawn and acquiescence in result is substituted therefor. (See footnote 2)

Acquiescence in the issue relating to whether the payment of two months post-mortem rent on decedent's apartment is a deductible administration expense.

10 Acquiescence in the issue relating to whether the life tenant's reimbursement to the charitable remaindermen of the additional estate taxes resulting from an election to claim administration expenses as income tax deductions qualified for the charitable deduction where the reimbursement was required by state law.

11 See Rev. Rul. 78-124, 1978-1 C.B. 147.

19 Acquiescence in the issue, relating to whether in computing the proper allowable amount of the deduction under section 691 (c), the "estate tax attributable to the net value" of the section 691 (a) items must be computed on the basis of removing the net value of the section 691 (a) items from the gross estate and assuming no further change in facts or whether the residual charitable bequest must also be reduced.

13 Acquiescence in the issue relating to whether under New York law an executor may renounce a decedent's interest in a testamentary bequest.

14 Acquiescence in result in the issue relating to whether the renunciation of decedent's interest in a testamentary bequest 33 months after its creation was within a reasonable time. (See footnote 2)

15 Nonacquiescence published in 1972-2 C.B. 3 is withdrawn and acquiescence is substituted therefor.

16 Acquiescence in result in the issue relating to whether during 1971, petitioner, the wife of an employee of an international organization, was a resident alien entitled to file a joint return and claim certain exemptions under section 871. (See footnote 2)

17 Acquiescence in the issue relating to deductibility of amounts paid in settlement of an antitrust action.

18 Acquiescence in the issue relating to whether decedent's transfer of certain state and municipal bonds within three years of his death was made "in contemplation of death" within the meaning of section 2035.

19 Acquiescence in the issue relating to whether dividend credits, net of interest due, made by petitioner against stock purchase contracts executed by certain of its em ployees constitute additional compensation.

Acqiuescence in the issue relating to whether amounts received constituted distributions with respect to the stock of the parent.

21 See Rev. Rul. 78-123, 1978-1 C.B. 87.

See Rev. Rul. 78-197, 1978-1 C.B. 83.

Acquiescence in the issue relating to whether petitioner realized dividend income for his transfer of 238 shares of stock in his family corporation to his family foundation pursuant to a prearranged plan whereby the foundation thereafter immediately redeemed such stock for assets of the corporation.

24 Nonacquiescence published in 1971-2 C.B. 4 is withdrawn and acquiescence is substituted therefor.

25 Nonacquiescence published in 1969-2 C.B. xxvi is withdrawn and acquiescence is substituted therefor.

28 See Rev. Rul. 78-301, page 103, this Bulletin.

Acquiescence in the issue relating to whether petitioner is entitled to deduct a truck license registration fee as an ordinary and necessary business expense.

Acquiescence in the issue relating to whether participating agreements in a mutual fund should be valued for estate tax purposes by adding to the liquidation value a portion of the sales load attributable to such agreements.

29 Nonacquiescence in the issue relating to whether the taxpayer can be required to inventory costs incurred for taxes and repairs where such items are specifically allowed as deductions by the Code or regulations.

30 Nonacquiescence in the issue relating to whether a claim by decedent's sister which was allowed by the Surrogate's Court with the consent of the only parties in interest is a deductible claim against the estate.

Nonacquiescence in the issue relating to whether, assuming a section 691 (c) deduction is allowable, respondent was precluded from arguing on brief or on Rule 155 that the deduction is an offset to the section 691 (a) income rather than a deduction from gross income, the statutory notice having disallowed the entire section 691 (c) deduc.

tion.

* Nonacquiescence in the issue of whether petitioner's receipts of clearing house and marketing functions constitute gross income.

33 Nonacquiescence in the issue relating to whether decedent retained sufficient rights in a trust created for the benefit of his grandson to require its inclusion in his gross estate under the provisions of sections 2036 (a) (2) and 2038 (a) (1).

34 Nonacquiescence in the issue relating to whether sales under petitioner's coupon book installment plan qualify as "sales on the installment plan" under section 453 (a) of

the Code.

Nonacquiescence in the issue relating to whether the available earnings and profits computation should be reduced by the fair market value of appreciated securities donated to a charitable foundation.

38 Acquiescence published in VIII-2 C.B. 27 (1929), is withdrawn and nonacquiescence is substituted therefor.

See Rev. Rul. 78-62, 1978-1 C.B. 226.

38 Nonacquiescence in the issue relating to whether petitioner is entitled to a charitable contribution deduction at the rate of $863 per share for his transfer to the founda.

tion.

* Nonacquiescence in the issue relating to whether petitioner is entitled to deduct the required payment of his pro-rata share of the cost of providing a nonexclusionary organized mess for the firemen at his place of employment as an ordinary and necessary business expense.

40 Nonacquiescence in the issue relating to whether petitioner is entitled to an estate tax credit for a life interest in her predeceased husband's share of the community property, which life interest decedent received when she elected to take under her husband's will in lieu of claiming her rights in the community property, when as part of such election decedent was required to relinquish the remainder interest in her share of the community property.

41 Acquiescence published in 1961-2 C.B. 5 is withdrawn and nonacquiescence is substituted therefor.

Acquiescence in result only published in 1974-2 C.B. 3 is withdrawn and nonacquiescence is substituted therefor.