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and, like Julian W. and petitioner, one $5,000 distribution.
Also, in 1993, LPP made four $522 payments to a bank on behalf of
Julian E. In 1996, there were distributions to Julian E. in the
form of tax payments on his behalf.4
For 1993-95, LPP’s total distributions to shareholders
closely approximated the 42-29-29-percent ownership interests of
Julian E., Julian W., and petitioner, respectively, as reflected
on LPP’s 1993-95 returns as filed.5
Petitioner’s 1998 and Amended 1996 and 1997 Returns and LPP’s
1997 and 1998 Returns
During the course of litigation in the Louisiana State
courts instituted by petitioner against LPP, Julian E., Julian
W., and others with respect to the number of LPP shares owned by
4 The record contains no evidence as to the actual amounts
of the monthly payments to Julian E. from 1986 to 1992, and only
petitioner’s testimony that they, in fact, were made.
5 We make no findings of fact regarding ownership of the
100 shares between 1990, after Alma died, and 1996 when Julian W.
and petitioner each became the owner of 50 of the 100 shares. In
2001, LPP’s accountant represented to respondent that LPP’s
1986-95 returns show that Julian E. held 42 percent of its shares
and Julian W. and petitioner, 29 percent each, and that,
effective January 1996, Julian E. conveyed all of his LPP shares
to Julian W. and petitioner, one-half to each. That
representation is corroborated by trial testimony given in an
earlier Louisiana State court proceeding by LPP’s prior
accountant. There is, however, contradictory evidence in the
record indicating that (1) at the time of her death in 1990, Alma
owned a one-half community interest with Julian E. in 42 shares
of LPP stock, (2) she bequeathed the shares represented by that
interest (21 shares) to Julian W. and petitioner, 10.5 shares to
each, thereby giving each 39.5 shares or a 39.5-percent interest
in LPP as of 1990, and (3) in 1996, Julian E. transferred 21
shares to his children, not 42 shares.
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