IRS Caves on Billionaire's Estate Taxes, Agrees to Cut Widow's Liability

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July 6 — The IRS stipulated to estate and generation-skipping taxes totaling about $321 million instead of the $2.8 billion it had sought from the estate of former Detroit Pistons' owner Bill Davidson (Estate of Davidson v. Commissioner, T.C., No. 13748-13, stipulated decision, 7/6/15).

The Internal Revenue Service also stipulated to $3.5 million of the $10 million in gift taxes that it had claimed were owed by Bill's widow, Karen (Davidson v. Commissioner, T.C., No. 17166-13, stipulated decision, 7/2/15).

U.S. Tax Court Judge David Gustafson entered the stipulated decisions July 6 in the estate's case and July 2 in Karen's case.