- 3 - reported tax liabilities, as well as delinquency additions to tax and interest, for 1995, 1996, and 1997, and sent corresponding notices of balance due, on August 23, 1999, September 6, 1999, and August 9, 1999, respectively. Similarly, on October 5, 1999, petitioner filed a late 1998 income tax return showing a balance due, which was not accompanied by any payment. The 1998 tax liability, additions to tax, and accrued interest were assessed by respondent on November 15, 1999, and a notice of balance due was sent. For the 1999 taxable year, petitioner filed a timely return showing an overpayment and claiming an earned income credit. Respondent assessed the 1999 tax liability on February 28, 2000, and transferred an overpayment credit to 1995. Thereafter, on August 7, 2000, respondent made additional assessments to petitioner’s 1999 account, and sent a notice of balance due, for tax, additions to tax, and interest resulting from certain uncontested adjustments. After filing her 1995 through 1998 returns, petitioner on October 26, 1999, created the “Amy H. O’Brien 1999 Irrevocable Trust”. The trust instrument designated a third party as trustee and established a support trust for petitioner’s benefit. Specifically, the trust instrument’s “THIRD” term and condition provided as follows with regard to distributions: During my lifetime, the Trustee shall pay the net income from the trust property at least quarter-Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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