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full effect. HCFA encountered problems implementing the system,
and it was not finally implemented until October 1, 2000.
OPINION
I. Introduction
Respondent has determined that petitioners’ participation in
the asset transfer made them liable for deficiencies totaling
$256,114,435.6 Respondent’s determination rests on his expert’s
determination that the fair market value of the transferred
assets exceeded the assumed liabilities by approximately $20
million. Petitioners argue that the assumed liabilities exceeded
the fair market value of the transferred assets. Petitioners
rely on their expert, who concluded similarly. It is with this
backdrop that we proceed to decide the assets’ value at the time
of the transfer. We bear in mind the wide difference in values
ascertained by the experts.
II. Fair Market Value
A. Overview
A determination of fair market value is factual, and a trier
of fact must weigh all relevant evidence of value and draw
6 Of course, were the respondent to prevail in full, he
would be entitled to only $46,460,477 of approximately
$256,114,435. The lion’s share of the $256,114,435 is
attributable to excise taxes under sec. 4958(a)(1) and (2) and
(b) totaling $41,753,311 ($4,635,923 + $30,000 + $37,087,388),
for all or part of which respondent has determined that eight
petitioners are jointly and severally liable.
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