The Internal Revenue Service is going after the estate of Bill Davidson, former owner of the Detroit Pistons and auto industry supplier Guardian Industries, to the tune of more than $2 billion.
In a filing made public in Tax Court on Wednesday, the IRS disputed the estate representatives assertions, filed in June, that the estate tax was grossly inflated, according to the Detroit Free Press.
Among the objections that the IRS has with the estate are the valuation Davidsons accountants placed on stock in his company, for purposes of gifts, trusts and other transfers to family members.
One of the techniques used was Self-Canceling Installment Notes, or SCINs, in which Davidson sold assets with the proviso that the payments would be canceled when he died. The IRS said he didnt properly calculate his own life expectancy, with the result that family member payments amounted to less than fair market value.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access