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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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Last modified: May 25, 2011