- 7 - the corporation’s outstanding stock. If petitioner intended the treasury shares to be included in the total shares of corporation stock listed on Schedule E, then it would have listed the percentages owned by Mr. Apgar and Mr. Oliver accordingly. For example, petitioner alleges that the total number of common stock shares was 344, with Mr. Apgar holding 122 shares, Mr. Oliver holding 50 shares, and each then owning 35.5 percent and 14.5 percent of the total shares, respectively. Petitioner, however, did not indicate these ownership percentages on its Schedule E for either 2002 or 2003. Petitioner next argues that it indicated the percentages of each officer’s stock ownership in relation to the other because the directions attached to Schedule E require that it list “the deductible part of each officer’s compensation”. This argument, however, has no relationship to the percentage of stock owned by the officers but rather deals exclusively with the total compensation of officers as indicated on Schedule E, section (f). Accordingly, we cannot conclude that there is merit in any of petitioner’s arguments with respect to its completed Schedules E. Petitioner next argues that the 172 shares of treasury stock should be factored into the ownership test as described in section 448(d)(2)(B) and section 1.448-1T(e)(5)(i), Temporary Income Tax Regs., 52 Fed. Reg. 22766 (June 16, 1987), as thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 NextLast modified: November 10, 2007