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On August 8, 1986, the bankruptcy court appointed a trustee,
John Roberts, to administer the estate. Mr. Roberts decided not
to have the estate develop either Frenchtown Hills or the Auburn
Bluffs property. Mr. Roberts asked the bankruptcy court on
August 15, 1986, to approve the estate’s employment of a firm to
market and sell Frenchtown Hills.
Each lot in Frenchtown Hills was sold during the estate’s
administration at its fair market value. Petitioner did not
object to those values. The estate was unable to sell
petitioner’s Auburn Bluffs’ partnership interest. Instead, the
trustee reached a stipulated settlement with Auburn Bluffs’
partners. Petitioner paid $10,000 to the estate for the claim
against the DOE.
At the request of Mr. Roberts, Michael Owen, a certified
public accountant, prepared fiduciary income tax returns for each
of the estate’s taxable years ended June 30, 1986 through 1990,
and for a short period ended on December 31, 1990. Mr. Owen
obtained from Mr. Roberts, petitioner, and/or third parties
information as to the bases of property sold during the relevant
years. Mr. Roberts filed with the Commissioner each of the
returns prepared by Mr. Owens. The Commissioner destroyed those
returns. Mr. Roberts retained unsigned copies of the returns.
On April 19, 1993, Mr. Roberts filed his final report and
proposed distribution with the bankruptcy court as to the estate.
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Last modified: May 25, 2011