- 7 -
The objection also challenges respondent’s authority to
determine a deficiency against Adorno Asset because “IRR
301.7701-4(b) clearly states that: there is another entity that
is like a trust, but it is not recognized (not known to exist) as
a trust for internal revenue purposes”.
E. Respondent’s Response
At the Court’s direction, respondent filed a response to the
foregoing objection. Respondent contends that the third minutes
do not establish that Adorno Asset appointed Mr. Adorno as its
trustee under Illinois law, and, therefore, Mr. Adorno is not
authorized to act on behalf of Adorno Asset.
Upon the filing of respondent’s response, the Court issued
an order directing both parties to file certain documents with
the Court. Pursuant to the Court’s order, respondent filed,
inter alia, a complete copy of a Form 1041, U.S. Income Tax
Return for Estates and Trusts (Form 1041), filed in the name of
Adorno Asset for 1998.9 The Form 1041, which was executed by Mr.
Adorno on September 15, 1999, lists the date the entity was
created as January 1, 1996.10
9 Attached to the Form 1041 was a Schedule K-1,
Beneficiary’s Share of Income, Deductions, Credits, etc.,
indicating the beneficiary as “Pacare International Company,
Beleeze [Belize]” (Pacare). In response to the Court’s questions
concerning Pacare, Mr. Adorno was not aware of, could not recall,
and was not familiar with the name Pacare.
10 According to the record, Adorno Asset’s only business
(continued...)
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