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of the information respondent requested and sought to protect the
private company information. See Estate of Kohler v. United
States, 89 AFTR 2d 1279, 2002-1 USTC par. 60,435 (E.D. Wis.
2002). The court denied the motion to quash and the estate then
produced the requested documents.
Deficiency Notices
Respondent issued a deficiency notice to the estate that
determined the fair market value of the Kohler stock the estate
held on the alternate valuation date was $144.5 million. This
valuation was based on an appraisal report prepared by Richard
May of Valumetrics Advisors, Inc. The estate timely filed a
petition. Respondent also determined deficiencies in gift taxes
for Herbert, Natalie, and Ruth, and each also filed a timely
petition.
OPINION
We are asked to determine the fair market value of the
Kohler stock the estate held and whether any of the petitioners
are liable for the accuracy-related penalty. The estate argues
that the aggregate fair market value of the Kohler stock it held
on the alternate valuation date was $47,009,625. Respondent
argues that the fair market value of the stock on the alternate
valuation date was $144.5 million, a difference of approximately
$100 million from the value the estate reported. We shall begin
by considering the burden of proof.
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