- 8 - Upon the formation of NHUSS Trust, NHUSS, Inc., purportedly contributed all of its assets relating to petitioners’ furniture business to NHUSS Trust. It is unclear what, if any, assets were purportedly contributed to RJ Pendergraft Trust and to In God We Trust. On May 31, 2002, petitioners reported to respondent their status as trustees of the above three trusts on separate Forms 56, Notice Concerning Fiduciary Relationship. For 1999 and 2000, petitioners’ joint individual Federal income tax returns and the three trusts’ Federal income tax returns were prepared by Sam Fung (a.k.a. Fong), purportedly a certified public accountant. In connection with the preparation of their joint Federal income tax returns, petitioners provided to Mr. Fung check registers relating to petitioners’ furniture business along with a summary of the various related expenses (e.g., cost of goods sold and transportation). Petitioners reported on their joint Federal income tax returns for 1999 and 2000 nominal wages as taxable income, which, after petitioners’ personal exemptions, was reduced to zero taxable income and resulted in no tax liability being reported on petitioners’ joint individual Federal income tax returns for 1999 and 2000. On trust Federal income tax returns for 1999 and 2000, filed with respondent on behalf of NHUSS Trust, the income of thePage: 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