T.C. Memo. 2006-76
UNITED STATES TAX COURT
ESTATE OF PEARL I. AMLIE, DECEASED, RODNEY B. AMLIE, EXECUTOR,
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 16039-02.
Filed April 17, 2006.
Robert E. Dallman, Michael G. Goller, and Robert B. Teuber,
James E. Schacht and Mark J. Miller, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
GALE, Judge: Respondent determined a Federal estate tax
deficiency of $360,266, and an accuracy-related penalty under
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1 Unless otherwise indicated, all section references are to
the Internal Revenue Code of 1986 as in effect at the date of
decedent's death, and all Rule references are to the Tax Court
Rules of Practice and Procedure.
2 In the notice of deficiency, respondent also determined a
fraud penalty of $193,391 under sec. 6663(a). Respondent has
since conceded the fraud penalty and proceeds on his alternate
determination of an accuracy-related penalty for negligence or
disregard of rules or regulations under sec. 6662(a), confined to
that portion of the underpayment arising from the value reported
for decedent's FABG stock, or $51,571.
3 The estate argues, in the alternative, that if the value
of the FABG stock is as determined by respondent, then the Rodney
B. Amlie Trust had a claim against the estate of $495,968,
deductible by the estate under sec. 2053(a)(3). As we decide
this case on other grounds, we find it unnecessary to consider
section1 6662(a), with respect to the Estate of Pearl I. Amlie
(the estate).2 After concessions, the issues remaining for
(1) The fair market value of First American Bank Group, Ltd.
(FABG) stock held by Pearl I. Amlie (decedent) at her death.
Subsumed within this issue is the question of whether an
agreement restricting the sale of decedent's FABG stock fixes the
stock's value or should be disregarded in determining value for
Federal estate tax purposes;3
(2) the fair market value of five parcels of agricultural
real property (farm land) owned by decedent