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assets of Ms. Herbst and/or Mr. Herbst, including their personal
residence that they had transferred to Herbst Management Trust at
a time that is not disclosed by the record. Herbst Management
Trust also deducted other amounts in its 1996 and 1997 trust
returns with respect to personal expenses of Ms. Herbst and/or
Mr. Herbst.
During respondent’s examination of Herbst Management Trust’s
1996 and 1997 trust returns, respondent was provided with a trust
document relating to Herbst Management Trust. That document
showed an individual named Edward Bartolli as the original
trustee of Herbst Management Trust. Edward Bartolli resigned
shortly after the Herbst Management Trust was purportedly formed.
During respondent’s examination of Herbst Management Trust’s 1996
and 1997 trust returns and thereafter, no books, records, or
other information was provided to respondent establishing (1) the
jurisdiction under the laws of which Herbst Management Trust was
purportedly organized, (2) the person who is authorized to act on
behalf of Herbst Management Trust, and (3) that Herbst Management
Trust was at all relevant times a trust cognizable for Federal
tax purposes. Nor did Herbst Management Trust at any time
provide any books, records, or other information to respondent
establishing the income reported and the expense deductions
claimed in Herbst Management Trust’s 1996 and 1997 trust returns.
Respondent has no record of Herbst Charitable Trust’s having
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Last modified: May 25, 2011