Estate of Morton B. Harper, Deceased, Michael A. Harper, Executor - Page 30

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               number.  That is required before a checking account is                 
               open.  So I just made the determination that without a                 
               checking account and I wanted the flow of cash, what we                
               would do is use the Morton B. Harper Trust account as a                
               holding account, and then I instructed the accountant                  
               to properly credit and account for those funds. * * *                  
          This explanation, however, seems to beg the question.  Had                  
          Michael sought promptly upon HFLP’s creation to establish a bank            
          account, he would have been immediately alerted to the need for             
          an EIN.  Hence, he either neglected to attempt opening and/or               
          using an account or allowed the lack of an EIN to continue for              
          several months after having been reminded of its necessity.  Both           
          reflect at best a less than orderly approach to the formal                  
          partnership structure so pressed by the estate.                             
               Moreover, we find Michael’s reliance on post mortem                    
          accounting manipulations to be especially unavailing.  Michael              
          and Mr. Blankstein, HFLP’s accountant, each testified that no               
          moneys actually changed hands in connection with the adjustments.           
          In response to similar contentions in Estate of Reichardt v.                
          Commissioner, supra at 154-155, we stated:                                  
               The 1993 yearend and 1994 post mortem adjusting entries                
               made by Hannah’s firm were a belated attempt to undo                   
               decedent’s commingling of partnership and personal                     
               accounts.  There is no evidence that the partnership or                
               decedent transferred any funds to the other as a result                
               of the adjusting entries.  After-the-fact paperwork by                 
               decedent’s C.P.A. does not refute that decedent and his                
               children had agreed that decedent could continue to use                
               and control the property during his life.  [Fn. ref.                   

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