- 2 -
price. On Jan. 2, 1989, G notified N that G was
exercising its put, and, later that year, G transferred
its L stock to N in exchange for $31.75 million (L had
negative retained earnings). G and R argue that G sold
its L stock to N in 1989. N argues that the sale
occurred in 1981. Held: The sale occurred in 1989.
Dean Holbrook, Lance G. Harris, and John G. Lipsett, for
petitioner in docket No. 17763-95.
William L. Goldman, Christopher Kliefoth, Joni Lupovitz,
and Philip Alva McCarty, for petitioner in docket No. 18532-95.
Stephen M. Miller, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
LARO, Judge1: These cases are before the Court consolidated
for purposes of trial, briefing, and Opinion. See Rule 151.2
Griffin Paper Corp. (Griffin) petitioned the Court to redetermine
a deficiency of $3,703,147 in its 1989 Federal income tax. Great
Northern Nekoosa Corp. (GNN) petitioned the Court to redetermine
a deficiency of $357,753 in its 1989 Federal income tax.
1 The trial of these cases commenced under Judge Thomas B.
Wells. After hearing part of the testimony, Judge Wells recused
himself and the Court assigned these cases to Judge David Laro.
The parties agreed to let the testimony not heard by Judge Laro
stand, and neither side asked Judge Laro to recall any witness
who testified before Judge Wells.
2 Rule references are to the Tax Court Rules of Practice and
Procedure. Section references are to the Internal Revenue Code
in effect for the year in issue.
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