- 8 - Tarragon did not file a U.S. Fiduciary Income Tax Return, Form 1041, for 1995 and 1996.7 However, for those years, Tarragon received a Schedule K-1, Beneficiary’s Share of Income, Deductions, Credits, etc., from BHC Trust, another “business trust organization” whose purported trust instrument was the work of Zola Sheehan. The Schedule K-1 for 1996 reflects a loss in the amount of $13,078. Paul and Rosaria Jablonski attached this Schedule K-1 to their Federal income tax return for 1996 and used the loss on the Schedule K-1 to offset their other income.8 The parties agree that the law of the Commonwealth of Virginia controls with regard to the validity of the trusts described herein. Discussion According to respondent, petitioner failed to show that Paul Jablonski was petitioner's duly appointed trustee or that he otherwise had the capacity to commence this action unilaterally on petitioner’s behalf. Respondent asserts that, as a result, no valid petition was filed and that we must dismiss the petition for lack of jurisdiction. We agree. 7 Indeed, Tarragon did not file an income tax return from its inception through 1999. 8 The record does not include the Schedule K-1 for 1995 or the Jablonskis’ return for that year.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011