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as to the excise taxes imposed upon the individual shareholders
of the Sta-Home for-profit entities.
We conclude that each of the disqualified person/petitioners
is jointly and severally liable for the initial and additional
taxes under section 4958(a)(1) and (b) as to the excess benefits.
The effect of our holding is that the individual petitioners are
jointly and severally liable for the total excess benefit of
$5,164,000 from the three Sta-Home entities, while the Sta-Home
for profit entities are liable for taxes as specified in the
above table. In so concluding, we decline at this time
petitioners’ invitation to abate the initial and additional
excise taxes pursuant to section 4961 (second-tier tax abatement)
and section 4962(a) (first-tier tax abatement). Because the
excess benefit transactions have never been corrected for
purposes of section 4958(f)(6), petitioners’ invitation is, at
best, premature. Petitioners have not as of yet met the
prerequisite for the requested abatement; i.e., a timely
correction. In this regard, however, we note that sections
4961(a) and 4963(e)(1) generally allow for the abatement of a
section 4958 excise tax if the excess benefit transaction giving
rise thereto is corrected within 90 days after our decision
sustaining the tax becomes final. Cf. Morrissey v. Commissioner,
T.C. Memo. 1998-443. Because the issue of whether petitioners
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