-4- Trust was Alfred J. Olsen (Olsen). Smith/Associates was an APLLC whose members were a complex trust named 1992 WLK Trust (1-percent owner) and a grantor trust named MBK-96 Trust (99-percent owner). The grantor of MBK-96 Trust was Susan K. Smith (Smith), Olsen’s wife. Rossie/Associates was an APLLC with a single member, a grantor trust named JJR-97 Trust. The grantor of JJR-97 Trust was James J. Rossie, Jr. (Rossie). Olsen, Smith, and Rossie (collectively, the three individuals) were all attorneys who during 1999 worked for and received salaries from LTD. During that year, the three individuals also received compensation from LTD in the form of fringe benefits. LTD filed a 1999 Form 1065, U.S. Partnership Return of Income (1999 return), that reported that LTD realized $627,736 of ordinary income during that year and that all of this income was NESE. The 1999 return also reported that LTD’s partners were Smith/Olsen, Smith/Associates, and Rossie/Associates, but did not provide any details as to the members of the LLCs. In relevant part, the Commissioner determined in the FPAA that LTD’s NESE totaled $696,807 on account of a $69,071 increase that respondent made to LTD’s ordinary income. The Commissioner has since conceded a portion of the $69,071 increase in ordinary income (and NESE).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011