Robert C. and Patricia C. Humphrey - Page 10

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          for a continuance and remand.  On December 8, 2004, the Court               
          retained jurisdiction and remanded this case to respondent’s                
          Appeals Office for another administrative hearing to consider               
          petitioner’s underlying tax liability for the years at issue.               
               On March 2, 2005, Appeals Officer Mountjoy held an                     
          administrative hearing with Mr. Isaacson during which he argued             
          that:  (1) The stock at issue was not transferred to petitioner             
          because it was pledged to a lender as security for nonrecourse              
          debt;5 and (2) petitioner continued his employment with i2 after            
          his resignation and termination on December 31, 1999, until                 
          October 2000, and as a result, the exercise of the options                  
          qualified for nonrecognition of income pursuant to section 421.             
               During the conference, Mr. Isaacson said he would provide              
          additional documents to support petitioner’s claim that he                  
          continued his employment with i2 after December 31, 1999, and               
          provide a declaration from petitioner’s former boss, Greg Brady,            
          which would indicate that Mr. Brady accepted petitioner’s                   
          resignation in December 1999 and petitioner continued on as an              
          employee with i2 after January 2000.                                        
               On April 19, 2005, Appeals Officer Mountjoy mailed a letter            
          to Mr. Isaacson requesting him to submit the documentation and              
          declaration supporting petitioner’s claim.  On August 1, 2005,              



               5 This issue has been conceded.  See supra note 2.                     




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