- 17 -
Q Anything else?
A Not to my recollection.
Patricia claimed that she did not recall the disclaimer attached
to the 1996 return. Patricia also denied any recollection of the
documents that the Haneys signed in 2002.
J.O. attributed to other sources, including the Internet,
the frivolous documents they submitted in 2002 and their
frivolous responses in the summons enforcement proceedings.
We do not accept petitioners’ claims that the trusts were
not tax-motivated. Tax motivation alone, however, is not a
ground for disregarding the trusts. The parties have addressed
in their briefs the relevant factors, based on Markosian v.
Commissioner, 73 T.C. 1235, 1243-1244 (1980), which are:
(1) Whether the Haneys’ relationship to the asphalt business and
other assets changed when the trusts were created; (2) whether
the trusts had an independent trustee; (3) whether an economic
interest passed to other trust beneficiaries; and (4) whether the
Haneys were bound by any meaningful restrictions on the trusts’
operation. See, e.g., Sparkman v. Commissioner, T.C. Memo. 2005-
136; Edwards v. Commissioner, T.C. Memo. 2005-52; Gouveia v.
Commissioner, T.C. Memo. 2004-256. Petitioners have conceded
that none of the trusts had an independent trustee.
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