Walter and Susan Moore - Page 29




                                        -29-                                          
          “nonsense”.6  United States v. Tuff, 469 F.3d at 1253.  As was              
          true in the case of the taxpayer there, petitioner exercised her            
          options and purchased her CTI stock with cash.  While the cash              
          may not have come directly from her assets, but was borrowed from           
          CIBC Oppenheimer, she was personally liable to CIBC for repayment           
          of that borrowing.  We also note that she owned her CTI stock               
          after the exercise and had all of the rights of ownership related           
          thereto.                                                                    
               Apparently seeing the illogic of their just-rejected                   
          argument, petitioners in their petition and in their briefs                 
          expand their position as set forth in the memorandum of law by              
          arguing that the shares obtained through the exercise of the                
          stock options were subject to a substantial risk of forfeiture or           
          were nontransferable due to CTI’s insider trading policy.  Most             
          specifically, petitioners argue, petitioner exercised her options           
          during the corporate blackout period; thus, they conclude, the              
          shares were subject to a substantial risk of forfeiture and were            
          nontransferable until May 17, 2002, the day the restricted                  
          windows under the corporate insider trading policy ended.  We               
          disagree with this argument.                                                

               6 This argument has been previously considered and rejected            
          by this Court and others.  See Facq v. Commissioner, T.C. Memo.             
          2006-111; Hilen v. Commissioner, T.C. Memo. 2005-226; see also              
          Palahnuk v. United States, 70 Fed. Cl. 87 (2006), affd. 475 F.3d            
          1380 (Fed. Cir. 2007); Facq v. United States, 363 F. Supp. 2d               
          1288 (W.D. Wash. 2005); Miller v. United States, 345 F. Supp. 2d            
          1046 (N.D. Cal. 2004), affd. 209 Fed. Appx. 690 (9th Cir. 2006).            





Page:  Previous  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  Next 

Last modified: November 10, 2007