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Willits' outstanding shares, and was a director and chairman of
the board of Willits, March's cousin, and decedent's nephew.
Mannon testified that he bought the shares even though he did not
want them, because March was a family member, the estate taxes
were due, and he could not find another buyer.
We previously have held that "Forced sales of stock to
family members to enable them to pay estate taxes are in no way
reflective of fair market value because the sales occurred under
unusual circumstances." See Estate of Oman v. Commissioner, T.C.
Memo. 1987-71; see also Estate of Miller v. Commissioner, T.C.
Memo. 1959-235. Considering the relationship of the parties and
petitioner's need for funds to pay the estate taxes, we find that
Mannon was an accommodating buyer, not a willing buyer.
Therefore, we do not consider the sale to Mannon in deciding the
fair market value of petitioner's shares.
However, at the time petitioner sold the shares to Mannon,
petitioner also sold 125 shares to Bozarth and 10 shares to
Brown. Bozarth is a director of Willits and Brown is an
executive officer; both had their positions with Willits and were
shareholders before they purchased these shares. Furthermore,
neither one has any relationship with either petitioner or March.
We consider the price Bozarth and Brown paid evidence of the
value of a minority interest in Willits.
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