John C. and Tate M. Todd - Page 21




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          1.170A-13(c)(7)(xi)(A), Income Tax Regs.  Petitioners rely on               
          their plain language reading of the market quotations requirement           
          and argue that the regulation is invalid because inconsistent               
          with that reading.  Since we reject petitioners’ plain language             
          reading, we reject petitioners’ argument based on that reading,             
          that the regulation is invalid.                                             
               Petitioners have failed to satisfy the market quotations               
          requirement for purposes of determining whether the shares were             
          (1) publicly traded so as to be exempt from the substantiation              
          requirements and (2) qualified appreciated stock.                           
                    4.  Substantiation Requirements                                   
               Petitioners have failed to show that they complied with the            
          three substantiation requirements specified in section 1.170A-              
          13(c)(1), Income Tax Regs.  First, there is no evidence that they           
          met the requirements specified in section 1.170A-13(c)(3), Income           
          Tax Regs., for a qualified appraisal.  Second, no appraisal                 
          summary is attached to the Form 8283 submitted with the Form                
          1040, as required by section 1.170A-13(c)(2)(B), Income Tax Regs.           
          Third, there is no evidence that they maintained records                    
          containing the information required by section 1.170A-                      
          13(b)(2)(ii), Income Tax Regs.                                              
               We find that petitioners failed to meet the substantiation             
          requirements.  Accordingly, except with respect to the $33,338              
          respondent allowed for 1994, no charitable deductions are allowed           






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