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the issues remaining for decision are: (1) The moment-of-death
value of 1,226 shares of John Paul Mitchell Systems common stock;
and (2) whether petitioner is liable for the section 6662(g)
penalty.1
All section references are to the Internal Revenue Code as
amended and in effect at decedent's date of death, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
Some of the facts have been stipulated and are found
accordingly. The stipulations of facts, stipulations of settled
issues, and attached exhibits are incorporated herein by this
reference.
A. Background
Paul Mitchell (Mr. Mitchell or decedent) was a resident of
Hawaii when he died on April 21, 1989. Patrick T. Fujieki is the
executor of the Estate of Paul Mitchell. Mr. Fujieki resided in
Honolulu, Hawaii, at the time the petition in this case was filed.
Among the assets included in Mr. Mitchell's taxable estate
were 1,226 shares of John Paul Mitchell Systems common stock held
by the Paul Mitchell Trust (the Trust), a revocable trust
1 On June 11, 1996, petitioner filed a Motion to Shift
the Burden of Persuasion. By Order dated July 8, 1996, we denied
petitioner's motion. On brief, petitioner again raised this
issue. We reaffirm our conclusions as stated in our July 8,
1996, Order. But even assuming arguendo we would have granted
petitioner's motion, our valuation of the stock at issue would
not be altered.
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