Discussion:Beneficary sueing other beneficiary who is also trustee for non-reporting of tax returns.
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Discussion Forum Index --> Tax Questions --> Beneficary sueing other beneficiary who is also trustee for non-reporting of tax returns.
| 19 September 2008 | |
| Here is the situation. About 20 years ago 2 individuals bought a piece of land ( they set up a trust with partner # 1 being the trustee and both partners, partner #1 and partner # 2 being the beneficiaries). Over those 20 years they had rented the parking lot however the operations of the parking lot were never reported on tax returns. Now the partners are at odds and partner #2 is sueing partner # 1 for failure to file the tax returns. I represent partner # 1 ; My question; is there anything in the code that might set precedence as to how far back we would need to file returns? Or in lieu of any actual code sightings would like to hear anybody’s experiences and comments that may be helpful | |
| 19 September 2008 | |
| there are several discussions on the statute of limitations for unfiled returns
as well as several discussions on the IRS non-filer initiative as well as several discussions on the policy of the IRS to 'secure' back returns
| |
| 19 September 2008 | |
thanks for the direction. found some items when i put in the statute of limitations but couldn't find anything on the irs non-filer initiative.. when i put that in the yellow box nothing comes up. Since you seem so knowledgeable i would like to ask your opinion on something I read in one of the searches.
I read from Mscash: " that in the IRS Manual Section 5.1.11.6.1.3 Enforcement Determination states: Enforcement of filing requirements will normally be pursued for a six year period. Always request all (non-fraudelent) unfiled returns. The taxpayer may file for all open periods regardless of the age of the delinquency. " I would file back six years and let it go at that unless IRS wanted more." a few others sited the "6 years" What's your opnion on the matter. Thanks | |
| 19 September 2008 | |
| As far as I'm aware, the statue of limitations does not start to run until the tax return is filed, thus there can be many years that has to be completed.
How did the benes report income? Did they have employees? Were p/r taxes paid? What was the reason for not filing? | |
| 19 September 2008 | |
| they didn't report the income. no employees, no pr taxes. General lack of business sense. | |
| 19 September 2008 | |
| Hi HA lack of business sense my a**. What did they get in the parking lot business cash? Tell partner 2 they are both screwed so decide between themselves when they want to come clean. Its doubtful one black pot can call the other black pot responsible for not filing. Did #2 he think he had no obligation to report things for 20 freaking years? How did they share the income over 20 years in your pocket in my pocket? Where did all the money go and how much are we talking? Sounds like a couple of idiots who want to shoot themslves in the head. Someone should smack each one on the back of the head. bye | |
| 19 September 2008 | |
| PS this made my day gotta go.Have a great weekend and hit em straight. bye | |
