Samueli

Richard M. Lipton, Baker & McKenzie, Chicago, IL, for the petitioners-appellants.

Bethany B. Hauser, Tax Division, U.S. Department of Justice, Washington, DC, for the respondent-appellee.

Before: A. WALLACE TASHIMA and JOHNNIE B. RAWLINSON, Circuit Judges, and JED S. RAKOFF, Senior District Judge. [*]

Opinion by Judge TASHIMA; Concurrence by Judge RAWLINSON.

Petitioners-appellants' petition for panel rehearing, which is unopposed by respondent-appellee, at least in part, is granted. The Opinion, filed September 15, 2011, slip op. 17597, [ 658 F.3d 992 ], is amended, as follows:

1. In the second full paragraph on slip op. at 17619 [658 F.3d at 1003], line 3, the word shall be substituted for the word in the phrase

2. The first paragraph on slip op. at 17628 [658 F.3d at 1008], commencing with "This error, however, did not make a difference. . ." and ending with "we affirm the Tax Court's ultimate deficiency determination." is deleted, and replaced by the following:

3. The Conclusion, Part III, slip op. at 17628 [658 F.3d at 1008], is deleted, and replaced by the following:

Judge Rawlinson would grant the petition for panel rehearing, but only for the purpose of amending the…