Court of Appeals for the Sixth Circuit July 18, 1986, No. 85-1483 (Estate of DeNiro v. Commissioner)

BOGGS, Circuit Judge.

This is an appeal from a Tax Court decision upholding a federal income tax assessment by the Commissioner of Internal Revenue against the Estate of Vincent DeNiro. For the reasons set forth below, we reverse and remand.

I.

In 1969, the Estate of Vincent DeNiro received from National Cigarette Sales (NCS), a corporation formerly controlled by Mr.