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not bound by his ruling but has neither withdrawn nor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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