Estate Seeks Refund Over Disallowed Fractional Interest Claims

An estate accused the IRS of wrongfully disallowing its fractional interest claims in real estate properties on Thursday.

The estate of Berek Dutkiewicz asked the US District Court for the Central District of California to grant its refund after paying nearly $2.34 million in audit deficiencies and penalties in April 2021. The agency improperly included the full value of its real estate properties on the estate’s Form 706, rather than excluding the fractional interests of the properties’ third-party co-owners, the estate said.

• According to the lawsuit, the IRS denied the estate’s refund claim solely on timeliness grounds and failed to ...