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check to a third party. See United States v. Allen, 551 F.2d
208, 212 (8th Cir. 1977).
Respondent determined that petitioner provided personal real
estate marketing services to Krismon Buttes for which $70,000 was
paid and that this $70,000 was taxable to petitioner. Petitioner
testified that marketing services were provided to Krismon Buttes
but denied providing them in her own name, stating they were
provided through Speck. Respondent sought to attribute all the
income of Speck to petitioner. Petitioner, however, introduced
no evidence that Speck was an independent taxable entity rather
than a sham, assignee, or grantor trust as contended by
respondent. Where a sham transaction has no economic effect, it
will not be recognized for tax purposes. Zmuda v. Commissioner,
731 F.2d 1417, 1421 (9th Cir. 1984) (citing Thompson v.
Commissioner, 631 F.2d 642, 646 (9th Cir. 1980), affg. 66 T.C.
1024 (1976)), affg. 79 T.C. 714 (1982).
The address for Speck on National Land Bank’s 1999 Form
1065, Schedule K-1, was the same as petitioner’s: 20 N. Gilbert
Road, Gilbert, Arizona 85234. On National Land Bank’s amended
1999 Form 1065, the address for Speck on the attached Form 1065,
Schedule K-1 was changed to 5804 W. Vista Drive, #347, Glendale,
Arizona 85301. Changing Speck’s address on the Form 1065,
Schedule K-1 attached to National Land Bank’s 1999 amended Form
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