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In the notice of deficiency, respondent determined, in
pertinent part, that petitioner had undervalued the JPMS common
stock. Respondent determined that the fair market value of the
Trust's interest in the 1,226 shares of JPMS common stock at the
moment of death was $105 million. Accordingly, respondent
determined that the value of the gross estate should be increased
by $76.5 million. The notice also determined section 6662(g) and
(h) penalties.
Petitioner filed a petition in this Court challenging
respondent's moment-of-death valuation for the Trust's 1,226 shares
of JPMS common stock, essentially restating the position taken on
the estate tax return. In the original answer to petitioner's
petition, respondent restated the position taken in the notice of
deficiency. Following the trial in this case, petitioner filed an
amended petition alleging that the value of the 1,226 shares of
JPMS common stock as of April 21, 1989, was $23,062,000, rather
than the $28.5 million reflected on both the estate tax return and
the original petition. In the answer to the amended petition,
respondent denied the allegations contained in petitioner's amended
petition.
ULTIMATE FINDING OF FACT
The moment-of-death value of the 1,226 shares of JPMS common
stock held by the Trust and includable in decedent's gross estate
was $41,532,600.
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