Arthur C. Brincat - Page 13




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          with Magna Carta, the trust, and his father’s death.  Respondent             
          argues that Edgar was aware at the time of filing his 1989 return            
          that the court had held that the $135,550 belonged to Magna Carta            
          and that it should be returned.  Edgar, who was alienated from               
          his father and family, was not aware of his father’s holdings or             
          prior litigation.  He believed that the amount received by him               
          was a nontaxable inheritance from his father.  That belief was               
          based on his father’s deathbed representations and the fact that             
          Edgar had received the $135,550 from the trust.  At the time of              
          the filing of Edgar’s return, the court’s holding was being                  
          appealed on the theory that the moneys received were                         
          inheritances.  Edgar was not involved in pursuing the litigation,            
          and he was generally unaware of the court’s holdings.                        
               Edgar had no working knowledge of Magna Carta and believed              
          that the trust was based on his father’s deathbed intent to                  
          permit Edgar to inherit from his father.  In addition, Edgar, a              
          disabled fireman who had no background in these matters, inquired            
          of his return preparer about whether an inheritance from his                 
          father was taxable.  Edgar provided his preparer with information            
          about the $135,550 based on his understanding.  The return                   
          preparer, who was a certified public accountant specializing in              
          tax and who had prepared Edgar’s returns since 1969, advised that            
          it was not taxable.                                                          








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