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Our Analysis
As mentioned, we find both the estate’s and respondent’s
valuations to be deficient and unpersuasive in calculating the
fair market value of TPC as an entity and in calculating the fair
market value of the estate’s 20-percent interest therein.
In this case, the estate, the executors of the estate, and
the underlying company, the stock of which is being valued, were
all headquartered and based in the New York City metropolitan
area, but the estate hired a lawyer and an accountant from
Alaska, both with relatively little valuation experience, to
value the estate’s 20-percent interest in TPC. The estate’s
experts valued TPC and the estate’s interest in TPC in an
aggressive manner largely by over calculating as of the May 2,
1998, valuation date, the risks associated with the Internet and
technology and by applying excessive minority and lack of
marketability discounts.
Goerig is a lawyer with an audit and tax dispute resolution
practice, and a tax return preparer, and he undertakes occasional
valuations for small businesses and private individuals. From
his resume, he appears to have attended limited appraisal
courses, other than a few courses while working for respondent
many years ago. Goerig also was appointed to act as
administrator for the estate to handle the anticipated audit by
respondent of the estate’s Federal estate tax return, a role
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