Stephenson Trust v. Commissioner
United States Tax Court
Each grantor created and each trustee maintained two trusts in each case. Respondent contends that two trusts were used instead of one trust in each case principally for tax-avoidance reasons. Accordingly, respondent determined under sec. 1.641(a)-0(c), Income Tax Regs., that the two trusts should be consolidated and treated as one trust in each case. Held: Sec. 1.641(a)-0(c), Income Tax Regs., is invalid. Each trust will be recognized as a separate taxable entity.
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Each grantor created and each trustee maintained two trusts in each case. Respondent contends that two trusts were used instead of one trust in each case principally for tax-avoidance reasons. Accordingly, respondent determined under sec. 1.641(a)-0(c), Income Tax Regs., that the two trusts should be consolidated and treated as one trust in each case. Held: Sec. 1.641(a)-0(c), Income Tax Regs., is invalid. Each trust will be recognized as a separate taxable entity. Estelle Morris Trusts v. Commissioner, 51 T.C. 20 (1968) (Court reviewed), affd. per curiam 427 F.2d 1361 (9th Cir. 1970),…
1Opinion of the Court
OPINION
Nims, Judge:
These consolidated cases are before us on petitioners’ motion for summary judgment pursuant to Rule 121.1
Respondent determined the following deficiencies in petitioners’ Federal income tax:
Docket No. Year Deficiency
3359-80 .1974 $2,383.51
1975 4,378.46
3360-80 .1975 10,562.58
Christina Bonde Stephenson and Garrick C. Stephenson resided in Virginia and New York, respectively, when they filed the petitions in these cases. Girard Bank maintained its principal office in Pennsylvania when it filed the petitions in these cases.
These cases concern the recognition of multiple trusts…
2Cases cited21 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Knetsch v. United StatesSupreme Court of the United States · 1960
- United States v. CorrellSupreme Court of the United States · 1967
- Bingler v. JohnsonSupreme Court of the United States · 1969
16 more not listed; retrieve them via the Exa API.
3Cited by30 opinions
- Miller v. CommissionerUnited States Tax Court · 1985
- Redlark v. Comm'rUnited States Tax Court · 1996
- Swallows Holding, Ltd. v. Comm'rUnited States Tax Court · 2006
- Estate of Pullin v. CommissionerUnited States Tax Court · 1985
- Perlin v. CommissionerUnited States Tax Court · 1986
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