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Ricke6 had a 95-percent and 5-percent membership interest in
Miroyal, respectively. The Form 1065, Schedules K-1 for both
petitioner and Gerald Ricke reflected a distributive share of
zero dollars for 2000.
B. National Land Bank LLC
1. Taxable Year 1999
National Land Bank filed its Form 1065 for 1999 on October
19, 2000, with attached Schedules K-1 showing petitioner and
Speck Trust (Speck) each with a 50-percent membership interest.
In 1999, National Land Bank reported $110,544 in gross receipts
and sales and claimed “other deductions” totaling $100,236 for a
claimed $10,308 loss. Revenue Agent Wayne Johnson (Mr. Johnson)
testified that petitioner made a mathematical error on National
Land Bank’s Form 1065 for 1999. The $10,308 loss should have
been reflected as $10,308 of income.7
On June 25, 2001, petitioner filed an amended Form 1065 for
National Land Bank’s 1999 taxable year showing zero dollars in
taxable income and changing the membership interest: Petitioner
25 percent and Speck International Trust 75 percent.8 Attached
6 The Court (noting that the letters “e” and “s” are
diagonally adjacent on a standard typewriter keyboard) assumes
that Gerald Ricks and Gerald Ricke are the same person. In any
event, it is not material to this opinion.
7 See supra note 2.
8 The Court assumes Speck Trust and Speck International
(continued...)
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