Estate of Ogarrio v. Commissioner
United States Tax Court
40 T.C. 242 (1963)
- Written by Eric Miller, JD
Facts
Rodolfo Ogarrio was a nonresident alien who had a cash account with Bache & Company (Bache), a stock brokerage based in New York. On January 10, 1957, Bache sold 3,936 shares of stock in Texas Company on behalf of Ogarrio. Ogarrio, who had been retired for several years, died in Mexico City on the morning of January 17, 1957. Later that day, Bache delivered a check for $257,350.53 to Hanover Bank in New York City, payable to Ogarrio and including the proceeds from the Texas Company stock sale. The commissioner of the Internal Revenue Service (IRS) (defendant) determined a deficiency in Ogarrio’s US estate tax. Ogarrio’s estate (plaintiff) challenged the deficiency in the United States Tax Court, arguing that the January 17 deposit was excludable from Ogarrio’s taxable gross estate under § 2105(b) of the Internal Revenue Code, which excluded moneys deposited by a nonresident alien in a US bank if the deposit was not connected with the conduct of a business in the United States. The estate’s argument relied on the fact that Bache had funds in excess of the deposited amount on deposit in various banks prior to Ogarrio’s death.
Rule of Law
Issue
Holding and Reasoning (Raum, J.)
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