- 3 -
section 6673(a)(2). We also permitted petitioner and his counsel
to file objections to respondent’s affidavit.
As an aid to understanding our findings and discussion, we
briefly recap the relevant findings in Edwards v. Commissioner,
supra.
Petitioner is a medical doctor who has been practicing
preventive medicine since 1961. Petitioner also acts as a
registered medical examiner for the Federal Aviation
Administration.
In 1995, on the advice of Estate Preservation Services
(EPS), operated by Robert L. Henkell,2 petitioner transferred
ownership of his medical practice, his movie and sound equipment,
his airplane and other vehicles, his residence, and other assets
to seven separate trusts. Petitioner’s revocable trust held
complete ownership of the “focus trust”, which held complete
ownership of the remaining trusts. Petitioner retained direct or
indirect beneficial ownership of all trust assets and continued
to exercise control over the trust assets after the transfers.
Although petitioner did not report any gain when he
transferred his assets to the trusts, the trusts claimed
2In October 1998, at the Commissioner’s behest, the U.S.
District Court for the Eastern District of California issued a
preliminary injunction enjoining EPS and Henkell from rendering
tax shelter advice. See United States v. Estate Pres. Servs., 38
F. Supp. 2d 846 (E.D. Cal. 1998), affd. 202 F.3d 1093 (9th Cir.
2000).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011