Fujieki

MEMORANDUM *

The Estate of Paul Mitchell again appeals the Tax Court’s judgment valuing 1,226 shares, 49.04% of the available shares, of John Paul Mitchell Systems (“JPMS”) at $41,532,600 for estate tax purposes. We remanded this case once before with instructions to conduct a proper valuation assigning the burden of proof to the Commissioner. Estate of Mitchell v. Comm’r, 250 F.3d 696, 704-05 (9th Cir. 2001). Because the Tax Court complied with our instructions upon remand, we affirm its decision.

The Tax Court properly placed the burden of proving by a preponderance of the evidence the existence and amount of the deficiency upon the Commissioner. Estate of Mitchell, 250 F.3d at 702 . We review the factual findings of the Tax Court for clear error. See Estate of Trompeter v. Comm’r, 279 F.3d 767, 770 (9th Cir.2002).

The parties do not dispute that the value of JPMS at the moment of Mr. Mitchell’s death, discounted by the loss of his services to JPMS, was $135 million. Nor do the parties contest the 29% minority discount for decedent’s 49.04% interest. We do not find error in the Tax Court’s finding that the “real world” valuation of the whole company already included a…