## Facts

- Glenn G. Forgey died in October 1993.
- The Estate obtained an extension to file its federal estate tax return (Form 706) until January 14, 1995, but did not file by that date.
- After an IRS inquiry, the executor mailed the return in late May 1995; the IRS received it on June 2, 1995.
- The return reported about $2.2 million in estate tax and a balance due of about $1.7 million; it did not claim an interest-expense deduction.
- In July 1995, the IRS assessed the tax shown on the return and a § 6651(a)(1) late-filing addition to tax of about $378,802.
- After examination, the IRS issued a notice of deficiency on April 23, 1998, determining an estate tax deficiency of $866,434 and an additional § 6651(a)(1) addition of $216,609 attributable to that deficiency; the IRS also allowed an interest-expense deduction of about $488,190.
- The parties settled the estate tax liability, including agreed increases in the taxable estate, but the settlement (considering the interest deduction) resulted in an overassessment and no remaining deficiency.
- The remaining dispute concerned whether the Tax Court could review the earlier assessed (pre-notice) § 6651(a)(1) late-filing addition tied to the tax shown on the return.

## Issues

1. Whether the Tax Court has deficiency jurisdiction to redetermine a § 6651(a)(1) late-filing addition assessed before a notice of deficiency when the addition was computed on the tax shown on the return.
2. Whether § 6665(b)(1) permits Tax Court review of such an assessed addition on the theory that later adjustments in the deficiency proceeding make part of it “attributable to a deficiency.”

## Decision

- The Tax Court held it lacked jurisdiction to redetermine the § 6651(a)(1) late-filing addition assessed in July 1995 on the tax shown on the return.
- The court concluded the assessed addition was not “attributable to a deficiency” under §§ 6211 and 6665(b)(1) and therefore fell outside deficiency procedures.
- The court granted the Commissioner’s jurisdictional motion and entered decision for the Commissioner on that issue.

## Legal Principles

- The Tax Court’s jurisdiction in deficiency cases is statutory and generally limited to redetermining deficiencies under § 6213.
- Under § 6665(b)(1), additions to tax are treated as part of deficiency procedures only to the extent they are “attributable to a deficiency.”
- A § 6651(a)(1) late-filing addition assessed on the tax shown on the return, and assessed before issuance of a notice of deficiency, is not attributable to a deficiency and is not within the Tax Court’s deficiency jurisdiction.
- Later settlements, agreed adjustments, or an overassessment do not retroactively convert a previously assessed, return-based addition to tax into a deficiency-based addition for jurisdictional purposes.

## Conclusion

The Tax Court dismissed for lack of jurisdiction the Estate’s challenge to a pre-notice § 6651(a)(1) late-filing addition assessed on the tax reported on the return, holding that only deficiency-attributable additions asserted through deficiency procedures fall within its power to redetermine.


Estate of Forgey v. Commissioner, 115 T.C. 142 (2000)