The opinion of the court was delivered by: MCILVAINE
The Court finds the facts as stipulated by and between the respective parties to this action as follows:
1. Plaintiff at all of the times hereinafter mentioned was, and now is, the duly appointed, qualified and acting executrix of the estate of John W. Hubbard, Deceased (hereinafter referred to as the estate) and a resident of the City of Pittsburgh, Allegheny County, Pennsylvania, in this District.
2. The plaintiff brings this action against the United States of America to recover income taxes and interest thereon which the plaintiff claims were illegally assessed and collected by the defendant from the plaintiff. Plaintiff is a citizen of the United States, and jurisdiction is conferred upon this Court by 28 U.S.C.A. § 1346(a)(1).
3. Plaintiff's claim is for the recovery of income taxes assessed and collected from plaintiff in the principal amounts of $ 52,537.66 for the fiscal year ended May 31, 1949, $ 16,103.92 for the fiscal year ended May 31, 1950, and $ 11,536.24 for the fiscal year ended May 31, 1951, together with interest thereon.
4. On June 3, 1947, John W. Hubbard (hereinafter referred to as the decedent), a citizen of the United States and a resident of the City of Pittsburgh, Allegheny County, Pennsylvania, in this District, died testate.
5. On September 2, 1948, the plaintiff filed a Federal Estate Tax return with Stanley Granger (hereinafter referred to as the Collector) who at that time was the Collector of Internal Revenue for the Twenty-third Collection District of Pennsylvania and who is no longer in such office.
6. The said Federal Estate Tax return disclosed a total gross estate of $ 13,820,326.18 at date of death and a net estate for basic tax purposes of.$ 10,833,558.38. The net estate tax payable thereon was $ 5,544,670.61.
7. On September 17, 1948, the plaintiff filed with the Commissioner of Internal Revenue (hereinafter referred to as the Commissioner) a request for an early determination of the Estate's Federal Estate Tax liability.
8. On or about May 15, 1949, the Commissioner by his examining officer, Internal Revenue Agent L. J. Cheskey, commenced his examination of the Federal Estate Tax return filed for the estate.
9. On July 21, 1950, the Internal Revenue Agent in Charge of the Pittsburgh Division mailed to plaintiff a 30-day letter and enclosed therewith a copy of Internal Revenue Agent L. J. Cheskey's report of his examination, in which a deficiency of $ 2,300,901.82 in Federal Estate Tax was proposed.
10. On August 4, 1950, the plaintiff delivered a check to the Collector in the amount of $ 1,500,000 which sum was deposited at plaintiff's request in the Collector's 9-D Suspense Account in respect of the proposed deficiency referred to in Paragraph 9 hereof.
11. On August 28, 1950, the plaintiff filed a formal protest with the Internal Revenue Agent in Charge of the Pittsburgh Division wherein exceptions were taken to the adjustments and deficiency proposed in the 30-day letter of July 21, 1950 and the report of Internal Revenue Agent L. J. Cheskey attached thereto.
12. In the absence of an agreement with the Internal Revenue Agent in Charge as to the Estate's Federal Estate Tax liability, the case was transferred to the Internal Revenue Service's Technical Staff, Eastern Division. On July 9, 1951, the plaintiff offered to settle the said liability on the basis of a deficiency of $ 1,524,485.60 less a credit of $ 29,445.62 for Canadian Succession Taxes when proven. On July 18, 1951, the Assistant ...