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reasonable. Unless otherwise indicated, all section references
are to the Internal Revenue Code, and all Rule references are to
the Tax Court Rules of Practice and Procedure.
Background
The parties have not requested a hearing on the instant
motion. Consequently, we base our decision on the parties’
submissions and the record. The underlying facts of this case
are set forth in detail in Coburn v. Commissioner, T.C. Memo.
2005-283 (Coburn I), and we incorporate by reference the portions
of Coburn I that are relevant to our disposition of the instant
motion. The following represents a brief summary of the factual
and procedural background of the instant case.
At the time of filing the petition, petitioner resided in
Glastonbury, Connecticut. During 1996, petitioner received stock
of PhyMatrix Corp. (PhyMatrix) and CareMatrix Corp. (CareMatrix)
with an aggregate value of $1,675,000, and petitioner incurred a
related income tax liability of $621,980. On April 15, 1997,
CareMatrix lent petitioner $621,980, and petitioner pledged
57,248 shares of PhyMatrix common stock (the collateral) as
security on the loan.1 To complete the loan transaction,
petitioner executed a promissory note (the promissory note), a
stock pledge agreement (the stock pledge agreement), and a stock
1Petitioner concedes that the purpose of the loan was to
provide him with the money necessary to pay the aforementioned
income tax liability.
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