- 6 - February 6, 1998, petitioner filed an amended Federal gift tax return, reporting her July 2, 1996, gift to Clarajane of a 29.218462-percent limited partnership interest which had been omitted from her original 1996 gift tax return. Petitioner valued the July 2, 1996, gift at $423,871 and remitted an additional $177,265 of gift taxes. E. Notice of Deficiency In the notice of deficiency, issued June 19, 2001, respondent determined that petitioner’s 1996 gifts of partnership interests should be increased from the originally reported $1,040,000 to $3,137,287, resulting in a $998,508 gift tax deficiency as determined by reference to petitioner’s originally filed gift tax return.2 Respondent credited the additional $177,265 that petitioner had paid with her amended gift tax return as an advance payment of the gift tax deficiency so determined. OPINION A. The Parties’ Positions The only issue remaining in dispute is the fair market 2 In addition to the valuation issue, the notice of deficiency also raised these alternative contentions: (1) There was no economic substance to the partnership’s formation and operation; (2) the partnership interests should be valued without regard to any restriction on the right to use or sell the property within the meaning of sec. 2703(a)(2); and (3) petitioner made a taxable gift upon the partnership’s formation. The parties have stipulated that all such alternative contentions have been “withdrawn”.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011