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VI. Are Petitioners Entitled to Setoffs
to Any of the Section 482 Allocations
That Have Been Sustained? . . . . . . . . . . . . . . 159
VII. Section 6662 Penalties . . . . . . . . . . . . . . . 163
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . 171
MEMORANDUM FINDINGS OF FACT AND OPINION
GERBER, Judge: Respondent determined deficiencies in income
tax and penalties for petitioners’ 1990, 1991, and 1992 taxable
years as follows:
Additions to Tax
Sec. Sec.
Year Deficiency 6662(a) 6662(h)
1990 $194,534,167 $3,036,446.00 $71,740,776
1991 13,912,891 1,599,675.20 2,365,806
1992 216,139,109 1,835,598.00 82,784,448
In addition, respondent denied timely filed claims for refund by
petitioners with respect to the taxable years ended December 31,
1990, 1991, and 1992, in the amounts of $62,851, $920,991, and
$3,208,934, plus interest thereon, respectively.
The following issues remain for our consideration:
(1) Whether respondent’s determinations in the statutory notices
of deficiency were arbitrary, capricious, or unreasonable; (2)
whether petitioners and certain other entities were commonly
controlled, for purposes of section 482,1 on or after December 7,
1990; (3) whether petitioners realized additional capital gain on
the sale of the DHL trademark; (4) whether petitioners’ postsale
1 Unless otherwise stated, section references are to the
Internal Revenue Code as amended and in effect for the periods
under consideration. Rule references are to this Court's Rules
of Practice and Procedure.
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