- 4 - $67,321, $85,604, and $81,096 from the respective years' income because the deducted amounts were reported as income on the returns of an estate in bankruptcy (the estate). On October 28, 1983, Mr. Evans had filed for protection under Chapter 11 of the Bankruptcy Code. On September 29, 1988, his case was converted to Chapter 7 of the Bankruptcy Code, and his Chapter 7 proceeding continued throughout the subject years. Throughout the proceedings in the bankruptcy court, Mr. Evans was represented by experienced counsel, and Mr. Evans' position was that the royalty income (as well as all of his assets) belonged to him and not to the estate. Randolph N. Osherow (Mr. Osherow), an experienced bankruptcy attorney, was appointed trustee of the estate in or before 1989, and he remained as trustee throughout the subject years. Mr. Osherow disagreed with Mr. Evans' position on the ownership of the royalties, as well as the ownership of Mr. Evans' other assets. Sometime in 1989, Mr. Evans and Mr. Osherow settled their disagreement with the former retaining most of his assets. Following the settlement, Mr. Osherow never attempted to recover any of the royalties that had been paid to Mr. Evans; Mr. Osherow understood the settlement agreement to provide that the royalties belonged to Mr. Evans. The estate never received any of the royalties, and Mr. Osherow never reported the royalties as income on the Federal income tax returns that he filed for the estate.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011