Union Texas International Corporation, f.k.a. Union Texas Petroleum Corporation - Page 2

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                         Ps assert that they should be permitted                       
                    to use differing allocations for computing                         
                    the Windfall Profit Tax (WPT) and Percentage                       
                    Depletion Net Income Limitation (NIL).                             
                    1. Held:  P, Energy, is estopped to deny the                       
                    validity of the Forms 872.  Knowledge of the                       
                    merger is not attributed to R's WPT agents;                        
                    computerized information of the merger was                         
                    not accessible to them.                                            
                    2. Held: Ps are independent producers,                             
                    because they did not sell their propane to T.                      
                    3. Held: Sec. 4988(b)(3)(A), I.R.C., requires                      
                    Ps to compute the NIL in the same manner                           
                    under sec. 4988(b)(3)(A), I.R.C. and sec.                          
                    613, I.R.C.                                                        



               Jasper George Taylor III, Charles Washington Hall,                      
          William H. Caudill, and John B. Kinchen, for petitioners.                    
               Sheri Wilcox, for respondent.                                           

                                       OPINION                                         
               PARR, Judge:  In these consolidated cases, respondent                   
          determined the following deficiencies in windfall profit tax                 
          (WPT) for the taxable periods of 1983, 1984, and 1985,                       
          respectively: $3,471,045, $3,060,042, and $2,109,854.  Respondent            
          determined the deficiencies against Union Texas Petroleum                    
          International (International) for 1983 and 1984, and against                 
          Union Texas Petroleum Energy (Energy) for 1985.  In their                    
          petitions, petitioners raised an issue pursuant to section                   







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