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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.
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