- 62 -
$179 million payment. We believe that petitioner may be mistaken
in concluding that the $179 million payment does not consist of
any unstated interest. It appears that, in concluding that the
7.5-percent interest payment constitutes an adequate amount of
stated interest, petitioner overlooked the fact that the
7.5 percent interest amount was calculated on the basis of a
principal amount that did not include the disputed item. The
parties are directed to consult on that point and on the effect
of the various allocations petitioner made (and respondent
accepted) in reporting the award in order to determine whether
there is adequate stated interest. If the parties can resolve
the unstated interest issue, that resolution shall be reflected
in the Rule 155 calculation. If the parties cannot resolve that
issue, they shall report that status to the Court so that the
Court may determine the appropriate action.
Except as may be necessary to reflect unstated interest,
petitioner is sustained in reporting the disputed item as a long-
term capital gain, and respondent’s determination of a deficiency
in tax is not sustained to that extent.
Decision will be entered
under Rule 155.
Page: Previous 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Last modified: May 25, 2011