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substantially all of the assets of the corporation may occur
without approval of at least 66 2/3 percent of the shareholders.
On January 20, 1991, petitioner timely filed decedent’s
Federal estate tax return, and, for purposes of valuing the
201,408 shares of stock in Wilber Corp that decedent owned as of
the date of his death, petitioner elected to use on the estate
tax return the alternate valuation date of October 20, 1990.
Petitioner attached to the Federal estate tax return a letter
prepared by Alex Sheshunoff & Co., Inc. (petitioner’s first
expert), a national investment banking firm that maintains a
division specializing in the appraisal of banks and bank stock,
in which this expert valued decedent’s 201,408 shares of stock in
Wilber Corp, after discounting for various factors, at
$7,653,504, or $38 per share.
On audit, respondent obtained an appraisal of decedent's
201,408 shares of stock in Wilber Corp from Business Valuation
Services, Inc. (BVS). Respondent's expert considered the same
basic factors used by petitioner's expert but applied a control
premium, valuing decedent's 201,408 shares of stock in Wilber
Corp at $13,562,815, or $67.34 per share.
OPINION
Fair market value is defined as the price at which property
would change hands between a willing buyer and a willing seller,
neither being under any compulsion to buy or sell and both having
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