- 4 - Exodus filed bankruptcy on September 26, 2001. In a press release dated November 12, 2001, Exodus announced that the company’s common stock had no value. On his 2000 Form, 1040, U.S. Individual Income Tax Return, petitioner included in his alternative taxable income for alternative minimum tax (AMT) purposes $452,025, the excess of the price for Exodus common stock reported on NASDAQ on April 15, 2001, over the price he paid for the stock. Petitioner did not use the stock’s fair market value on the December 21, 2000, ISO exercise date. Instead, petitioner filed Form 8275-R, Regulation Disclosure Statement, disclosing that he relied on proposed legislation H.R. 2794, 107th Cong., 1st Sess. (2001), then pending in Congress, to use the stock’s fair market value on April 15, 2001. The proposed legislation would have allowed taxpayers to use the difference between the amount paid for shares purchased pursuant to the exercise of an ISO during 2000 and the fair market value of such shares on April 15, 2001, for purposes of computing their AMT. H.R. 2794, 107th Cong., 1st Sess. (2001), was never enacted. On November 13, 2003, respondent mailed petitioner a notice of deficiency, in which respondent determined a deficiency of $4,833 in petitioner’s 1999 Federal income tax and a deficiency of $169,510 in petitioner’s 2000 Federal income tax. In the notice of deficiency respondent stated:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011