- 27 -
Cir. 1959). Petitioner has the burden of showing that respondent's
valuation determinations as set forth in the notice of deficiency
are incorrect. See, e.g., Leonard Pipeline Contractors, Ltd. v.
Commissioner, 142 F.3d 1133, 1136 (9th Cir. 1998). "This burden is
a burden of persuasion; it requires * * * [petitioner] to show the
merits of [its] claim by at least a preponderance of the evidence."
Rockwell v. Commissioner, 512 F.2d 882, 885 (9th Cir. 1975), affg.
T.C. Memo. 1972-133; Estate of Gilford v. Commissioner, 88 T.C. 38,
51 (1987). In addition to initially overcoming the "procedural
burden of producing evidence to rebut the presumption in favor of
the Commissioner, the taxpayer must still carry his ultimate burden
of proof or persuasion." Rockwell v. Commissioner, supra at 885.
Here, we find, and thus hold, that petitioner has produced
sufficient evidence to overcome the presumption of correctness
attached to respondent's notice of deficiency valuation
determinations.4 However, this does not mean that we subscribe to
petitioner's reported valuations, for as will be further explained,
we do not.
Petitioner frames the ultimate valuation issue to be resolved
as "What was the fair market value of the Decedent's 2.8% minority
equity interest in Simplot as of June 24, 1993, represented by the
4 The U.S. Court of Appeals for the Ninth Circuit stated:
"When the Commissioner's determination has been shown to be
invalid, the Tax Court must redetermine the deficiency. The
presumption as to the correctness of the Commissioner's
determination is then out of the case." Cohen v. Commissioner,
266 F.2d 5, 11 (9th Cir. 1959), remanding T.C. Memo. 1957-172
(fn. ref. omitted).
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