- 2 - Internal Revenue Code (Code) in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. The issues for decision are whether: (1) The notice of deficiency relating to petitioner’s 1993 return was timely; (2) petitioner is liable for tax relating to undistributed trust income; and (3) petitioner is liable for additions to tax for failing to file his 1993 and 1994 returns in a timely manner. FINDINGS OF FACT Petitioner resided in Ashland, Virginia, at the time the petition was filed. Petitioner filed his 1993 and 1994 returns on September 23, 1994, and December 15, 1995, respectively. The notice of deficiency was sent to petitioner on October 29, 1998. Petitioner was a beneficiary of a trust which provided that he receive “the entire net income of his respective share, in convenient installments.” The trustee had the discretion to distribute principal. No distributions were made from the trust in 1993 or 1994. An order of the Virginia Beach Chancery Court (State Court), dated February 17, 1994, required the trustee to retain all trust income. Subsequently, the State Court terminated the trust and distributed petitioner’s share to satisfy his obligations.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011