Jack A. Upchurch - Page 5




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          After application of the annual exclusions and unified credit,              
          these adjustments resulted in a total proposed 1996 gift tax                
          liability of $371,792.  Petitioner filed a written protest to the           
          proposed changes, acknowledging that they pertained to his gift             
          tax liability for 1996.                                                     
               Because further correspondence failed to yield any agreement           
          between petitioner and respondent on the valuation issues, on               
          March 20, 2000, respondent mailed to petitioner at his last known           
          address a statutory notice of deficiency.  The deficiency notice            
          indicated that it was for tax year ending December 31, 1995, and            
          asserted a gift tax deficiency for 1995 in the amount of                    
          $367,623, the same amount stated in the 30-day letter for 1996              
          that was previously sent to petitioner.  Petitioner received the            
          deficiency notice on March 22, 2000.  Attached to the cover page            
          of the deficiency notice was a Form 4089-c, Notice of                       
          Deficiency--Waiver, a Form 3615-A, Explanation of Tax Changes,              
          and an additional schedule detailing the revisions to the values            
          of the transferred partnership interests.  The Form 4089-c and              
          the Form 3615-A both referred to a tax year ending December 31,             
          1995.  The Form 3615-A contained figures corresponding to the               
          1996 gift tax return filed by petitioner as well as the                     
          examiner’s report for 1996 gift tax.  The additional schedule               
          contained no reference to the taxable period, but it detailed the           
          gift transactions made by petitioner on December 26, 1996, and              







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