Lund v. Department of Revenue

SALLY L. KIMSEY, Magistrate.

This matter is before the court on Defendant’s Motion For Summary Judgment. At issue are Notices of Assessment for tax years 1994,1995, and 1996.

I. STATEMENT OF FACTS

Plaintiffs first came to the attention of the Internal Revenue Service for the tax years at issue here. The Internal Revenue Service issued its audit report in October 1998, determining that Plaintiffs operated a trust without economic substance, also known as a sham trust. Accordingly, it determined that income allegedly earned by the trust for tax years 1994, 1995, and 1996 should instead be…