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Unless stated otherwise, all section references are to
the Internal Revenue Code as in effect for 1989. After
concessions, the issues remaining for decision
are: (1) Whether the fair market value of the capital
stock of Soft Warehouse, Inc. ("SWI"), on June 30, 1989,
was $60.98 per share as petitioners contend, or $1,739.82
per share as determined by respondent; and (2) whether
petitioners are liable for the accuracy-related penalty
prescribed by section 6662(a).
Respondent's Motion in Limine
As a preliminary matter, we must decide respondent's
motion in limine wherein she asks the Court to overrule
certain evidentiary objections reserved by petitioners in
the stipulation of facts. Petitioners object to the
admission of the following joint exhibits:
1. A memorandum prepared by Dubin Clark &
Co., Inc. ("Dubin Clark"), describing
its 1989 purchase of SWI;
2. A memorandum prepared by Continental
Illinois National Bank and Trust Co. of
Chicago ("Continental Bank") for the
purpose of approving financing for
Dubin Clark's purchase and subsequent
expansion of SWI;
3. A valuation of a noncontrolling equity
interest in SWI as of March 31, 1990,
prepared by KPMG Peat Marwick and dated
June 14, 1990;
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