Court Opinion

ID: 9455929
Source: CourtListenerOpinion
Date Created: 2023-08-04 19:37:35.379953+00
Date Added: 2024-06-11T17:34:47.635769
License: Public Domain

ON PETITION FOR REHEARING
PER CURIAM:
In its petition for rehearing the taxpayer calls to our attention the fact that we quoted from a protest letter filed with the District Director of Internal Revenue, but stated that the quotation *715came from its claim for refund. We now quote from the claim for refund:
Sid W. Richardson Foundation (a Texas nonprofit corporation) is the transferee of the estate of Sid W. Richardson, deceased, and paid the tax and interest shown above. By virtue of Section 642(c), IRC of 1954, and the will of said decedent, said estate was entitled to an unlimited charitable deduction in computing its income tax liability for its fiscal year ended September 30, 1960, in an amount not in excess of its gross income for said period, which gross income exceeded its net income, and owed no income tax for said period. This unlimited charitable deduction was improperly limited in determining the deficiency so illegally assessed against said taxpayer and transferee. See the income return of the Estate of S. W. Richardson, Dee’d., for said period, the report thereon of Internal Revenue Agent Raymond F. Kelly dated 5/16/63, the protest thereto of said Estate dated 7/8/63, and the certified copy of the will of said decedent S. W. Richardson (heretofore filed with the I.R.S.), all of which are incorporated herein by reference.1
The quoted language from the claim for refund does not change the conclu-. sion reached in our opinion. The entire record strongly indicates that the theory of the taxpayer’s claim for refund was based upon its contention that the undistributed Subchapter S income of Richardson Oils was a part of the estate as distinguished from the corporate entity. Even if the claim for refund is construed as embracing other eonten-tions, such contentions are rejected by the court. We adhere to the conclusion reached that the undistributed income of Oils was never a part of the estate and that the Foundation is not entitled to deduct from income, as charitable contributions under § 642(c) IRC of 1954, amounts representing undistributed income of the Subchapter S corporation.
The petition for rehearing is denied.