Gerald A. and Henrietta V. Rauenhorst - Page 1

                                   119 T.C. No. 9                                     

                               UNITED STATES TAX COURT                                

                GERALD A. AND HENRIETTA V. RAUENHORST, Petitioners v.                 
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 1982-00.              Filed October 7, 2002.                

                    Ps owned stock warrants in NMG.  WCP sent a letter                
               to NMG regarding its intention to purchase all the                     
               issued and outstanding stock of NMG.  Ps then assigned                 
               their warrants to four charitable institutions.  At the                
               time of the assignments, the donees were under no legal                
               obligation, and could not be compelled, to sell the                    
               warrants.  The donees subsequently sold their warrants                 
               to WCP.  R determined that the contributions by Ps were                
               anticipatory assignments of income.  Ps moved for                      
               partial summary judgment arguing that the anticipatory                 
               assignment of income doctrine does not apply where                     
               donees are not legally obligated, and cannot be                        
               compelled, to sell contributed property.  Ps rely on                   
               Rev. Rul. 78-197, 1978-1 C.B. 83.  R argues that he is                 
               not bound by his ruling but has neither withdrawn nor                  
               modified that ruling.                                                  
                    Held:  Rev. Rul. 78-197, supra, provides that, in                 
               the case of a charitable contribution of stock, the                    
               Internal Revenue Service will treat proceeds of the                    

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