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California when he died. His widow, Dorothy G. Cartwright, was
appointed executrix of his estate on August 18, 1988.
In June 1988, the following people owned CSB stock:
Shareholder Ownership Percentage Number of Shares
Robert E. Cartwright 71.43 10,000
Jack L. Slobodin 10.71 1,500
Robert U. Bokelman 3.57 500
Philip Borowsky 3.57 500
Harry F. Wartnick 3.57 500
Michael B. Moore 3.57 500
Lee S. Harris 3.57 500
199.99 14,000
1 The stipulation does not state why the ownership
percentages total only 99.99 percent.
F. The Estate’s Receipt and Tax Treatment of the Life Insurance
Proceeds
Prudential paid CSB $5,062,029 from the two life insurance
policies. This amount included the $2,500,000 death benefit
under each of the two policies and $62,029 in premium adjustments
and interest.
CSB paid $5,062,029 to the estate on December 1, 1988.
Sometime after December 31, 1988, CSB filed a Form 1099-MISC with
the Internal Revenue Service reporting that it paid $4,080,256
to decedent's estate in 1988 for nonemployee compensation.5
5 Petitioner points out that respondent could have issued a
deficiency notice to CSB taking a position inconsistent with
respondent's position in this case and, upon CSB's filing a
petition in this Court, moved to consolidate the two cases.
See Cooney v. Commissioner, 65 T.C. 101, 107-108 (1975) (the
Commissioner may take inconsistent positions with different
parties to protect the revenue); Foxman v. Commissioner, 41 T.C.
535, 548 (1964), affd. 352 F.2d 466 (3d Cir. 1965). We note that
(continued...)
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