The Nis Family Trust - Page 4




                                                - 4 -                                                  
            all Rule references are to the Tax Court Rules of Practice and                             
            Procedure.                                                                                 
                                             Background                                                
            Residence                                                                                  
                  At the time the petitions were filed, all petitioners                                
            resided in San Jose, California.                                                           
            Notices of Deficiency                                                                      
                  By separate notices of deficiency, each dated February 19,                           
            1999 (collectively, the notices of deficiency or notices),                                 
            respondent determined the deficiencies in tax and penalties set                            
            forth above.2  Respondent’s determinations were based on the                               
            following adjustments:                                                                     
                  Nis Family Trust                                                                     
                  Respondent disallowed petitioner’s deduction for fiduciary                           
            and attorney’s fees in the amount of $600 because of petitioner’s                          
            failure to establish the amount, if any, of such fees paid during                          
            the taxable year for ordinary and necessary expenses incurred in                           
            connection with trust administration or the management of trust                            
            assets.  Respondent disallowed petitioner’s deduction for a                                
            charitable contribution in the amount of $1,800 because of                                 


                  2  Copies of those notices of deficiency are attached as                             
            Exhibits A through C to respondent’s requests for admissions.  As                          
            set forth below, petitioners failed timely to deny respondent’s                            
            requests for admissions, and, therefore, such requests are deemed                          
            admitted.  See Rule 90. Petitioners are also deemed to admit that                          
            petitioner Hae-Rong Ni is also known as Frank Ni.                                          





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Last modified: May 25, 2011