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“trustee”.14 Mercury Solar PTO minutes dated May 5, 1998, state
that J. Clark Atkinson resigned as “Fiduciary Owner”.15 Mercury
Solar PTO minutes dated July 20, 1998, state: “At a meeting of
the Board of Trustees of Mercury Solar,”16 Myron Thompson was
appointed “Operations Manager” of Mercury Solar PTO, with
responsibility for “managing the day to day activities of the
company”. Myron Thompson resigned in June 2001.
Operations of HEH and Mercury Solar PTO
HEH purports to sell solar energy to customers through a
program where HEH agrees to sell, and the customer agrees to buy,
the energy produced from solar water heating system components
purportedly owned by HEH and installed on the customer’s property.
See Hvidding v. Commissioner, T.C. Memo. 2003-151. The
participating customer signs an agreement providing that the
customer shall become a beneficiary of HEH, that the HEH trustee
shall have the discretion to pass solar energy tax credits through
to the customer, and that such passthroughs shall be reported on
Schedules K-1, Beneficiary’s Share of Income, Deductions, Credits,
etc. (Schedule K-1). Id.
14 The purported formation documents of Mercury Solar PTO
contain no provision for the appointment of any “trustee”.
15 Consequently, reading the documents in the record
strictly, as of May 5, 1998, Mercury Solar PTO no longer had any
“Fiduciary Owner”.
16 The Mercury Solar PTO formation documents contain no
provision for any “Board of Trustees.”
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