Manships seek a settlement in estate tax suit

The Manship family—owners of The Advocate and WBRZ—may be close to ending a seven-year battle with the federal government. The dispute is over taxes on the estate of the late Baton Rouge media mogul Douglas L. Manship. The estate sued the Internal Revenue Service in February 2004, seeking a $26 million refund, alleging the late chairman’s stock in Capital City Press, Louisiana Television Broadcasting and Mobile Video Tapes was worth $28.4 million, not $62 million as the IRS insisted. The IRS had valued Manship’s total estate—including art, homes and cash—at nearly $82 million. The Manships paid $37 million in estate taxes and interest, but were seeking the return of $26.3 million. The case has dragged on in Baton Rouge federal court, but recent filings say the Manships made a settlement offer in May that is still being mulled by the U.S. Attorney General and the Congressional Joint Committee on Taxation. How much is the settlement? Court documents don’t say for certain. A joint status report filed in November says only that the offer includes a proposed adjustment to the value of the estate, as well as additional claimed administration expenses exceeding $12 million. Leon Gary, an attorney representing the Manship estate, confirms there is a “tentative settlement” but says the terms are confidential. A status conference is set for March 10 before U.S. District Judge Brian Jackson. —Penny Font