Estate of Joseph R. Cloutier, Joseph A. Cloutier, Fiduciary - Page 1


          T.C. Memo. 1996-49                                                          

                               UNITED STATES TAX COURT                                

                  ESTATE OF JOSEPH R. CLOUTIER, JOSEPH A. CLOUTIER,                   
                              FIDUCIARY, Petitioner v.                                
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 8905-94.              Filed February 13, 1996.              

                    C is a corporation whose stock is not listed on an                
               exchange.  D owned 100 percent of the stock when he                    
               died.  D’s stock was valued at $12,582,000 on the                      
               estate’s Federal estate tax return.  After R determined                
               that the stock should have been valued at $15,440,000,                 
               the parties stipulated that the stock was worth                        
               $12,250,000, without regard to any marketability                       
               discount or control premium that would otherwise apply.                
               The parties’ stipulation followed their receipt of                     
               appraisals of the stock’s value.  R’s sole appraisal                   
               stated that the stock was worth $12,619,000.  F’s three                
               appraisals stated that the stock was worth $11,625,000,                
               $11,652,555 and $11,850,000, respectively.  In making                  
               these appraisals, none of the appraisers determined the                
               stock’s value by reference to the price of comparable                  
               listed stock.  Held:  Because the stipulated value has                 
               not been shown to be representative of C’s “freely                     
               traded value”, no discount for marketability is                        

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