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True v. United States, Docket No. C79-131K (D. Wyo., Oct. 1,
1980) (1971 gift tax case). On October 1, 1980, after a trial,
the District Court (Judge Kerr) issued Findings of Fact and
Conclusions of Law that stated: “Taking into consideration all
of the facts and circumstances including the reasonable
inferences to be drawn therefrom, * * * the fair market value of
the stock in question as of the date of August 2, 1971 was $38.69
per share”, the book value price at which the sales to the True
children had been made. Judgment was entered accordingly, and
the United States did not appeal.
The Commissioner also determined gift tax deficiencies
against Dave and Jean True for the 1973 gifts to the True
children of partnership interests in True Oil and True Drilling.
However, the Commissioner conceded the deficiency relating to
True Drilling. The Trues paid the True Oil gift tax deficiencies
and filed a refund suit with the same court as the 1971 gift tax
case, designated as True v. United States, Docket No. C81-158,
reported as 547 F. Supp. 201 (D. Wyo. 1982) (1973 gift tax case).
On September 27, 1982, after a trial, Judge Kerr issued a
Memorandum Opinion that concluded:
Taking into consideration all the facts and
circumstances and the reasonable inferences to be drawn
therefrom, * * * the method of valuation used by the
plaintiffs in this case offers a more complete and fair
estimation of the fair market value to be used in the
valuation of the 8% interests given as gifts to
plaintiffs’ children. Application of plaintiffs’
valuation method results in a finding * * * that the
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