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Records
1,475.97 - 816.00 = 659.97
How it was created by Joanne Barnes
The accounting trail 1,475.97 - 816.00 = 659.97 is an accounting entanglement created by Joanne Barnes preparing a figure for the trust's court account that was different from the figure on the K-1 that goes to the IRS and the Estate when the figures should be the same; 1,475.97 was prepared for the Court and 816.00 was prepared for the IRS. Edward White reported the difference of 659.97:
To the Court in the Seventh Account for the Trust u/w of H. A. O'Connell at Bk480p1768:
"Payable to the Esate of Jean M. O'Connell ... ... ... ... ... ... ... ... $ 1,475.97"
To the Court in the First Account for the Estate of Jean O'Connell at Bk467p192:
"Int fm Harold O'Connell Trust ....................................... ... ... ... .. 816.00
Debt fm Harold O’Connell Trust ...................................... ............. 659.97 "
To the IRS and the State in the Estate tax return and it's two amendments:
"4 Interest due Harold O'Connell Trust ......................................... 816.00
5 Debt due from Harold O’Connell Trust ..................................... 659.97"
Brief history
1992.04.22 (Edward White to innocent Jean Nader, enclosure, in part)
"Debt from Harold O'Connell Trust 659.97"
1992.05.19 (Edward White to Anthony O’Connell, is part)
“2. The K-1 filed by the Trust showed a payment of $816.00 in interest to the estate. You sent a check in the amount of $1475.97 to the estate. What was the remaining $659.97? Do I have this confused with the tax debt/credit situation which ran from the Third Accounting?"
1992.09.08 (Estate tax return to the IRS and State, schedule F)
"4 Interest due Harold O'Connell Trust ......................................... 816.00
5 Debt due from Harold O’Connell Trust ..................................... 659.97"
1992.11.13 (Edward White to beneficiaries, in part)
"Of this $659.97 can be ignored as it was repayment of a debt from the O'Connell Trust and not income, and at least $13,388.25 was tax free income"
1993.01.12
(Commissioner's Office to Anthony O'Connell, form letter in part)
"This is regarding your seventh accounting" 1
"Interest or income must be listed on your accounting. Please amend your accounding to reflect these amounts. Thanks, Stephanie"
1 Prepared by Joanee Barnes. Joanne Barnes would not amend her accounting. Perhaps this was about the $816.00
1993.02.12 (Joanne Barnes [Forrest Balderson] to Anthony O'Connell, in part)
"
The final point in your letter is in regards how to treat the $1,475.97 of cash which was paid to your mother's estate in 1992. This is just a cash transfer to cure a cash deficiency as of the date of death and NOTHING else. On page 4 of the Seventh Account, your mother owed the Trust at the end of the Sixth Account $3,705.74 but you had underdistributed $5,181.71 of cash through her date of death. The $1,475.97 just completes what was due her. The transfer to her estate has no tax effect for either 1991 or 1992."
Note: Missing $659.97. The numbers to the Court are mentioned but not the numbers to the IRS. The numbers $659.97 and $816.00 are not mentioned and are not on the spreadsheets. I believe the family would need the help of the Court and the IRS and their cooperation with each other to remove the accounting entanglement 1,475.97 - 816.00 = 659.97. The family is powerless against the accountants.
1993.03.20 (approved) (First Court account for the Estate, in part)
"Int fm Harold O'Connell Trust ......................................... 816.00 "(Book 467 page 192)
"Debt fm Harold O’Connell Trust ...................................... 659.97 "(Book 467 page 192)
1993.06.13 (First amended Estate tax return to the IRS and State, schedule F, in part)
"4 Interest due Harold O'Connell Trust ......................................... 816.00
5 Debt due from Harold O’Connell Trust ..................................... 659.97"
1993.10.04 (approved) (Seventh Court account for the Trust, in part)
"Payable to the Esate of Jean M. O'Connell ... ... ... ... $ 1,475.97" (Book 480 page 1768)
1995.04.10 (Second amended Estate tax return to the IRS and State, schedule F, in part)
"4 Interest due Harold O'Connell Trust ......................................... 816.00
5 Debt due from Harold O’Connell Trust ..................................... 659.97"
1999.08.09 (Anthony O’Connell to Jesse Wilson and Henry Mackall, in part)
“To keep this Twelth Account simple and clear I will only address one of the known entanglements. In short, the CPA (firm) did the Trust's Seventh Court Account in a manner that required me to pay the Estate $ 1,475.97. The lawyer discovers that this is $659.97 too much. I can't get the CPA (firm) or the lawyer to address this $659.97 debt much less pay it back. This one is easy to see because it is clearly stated in the beginning of the Estate accounting as a Debt from the Harold O'Connell Trust 659.97”
2000.08.08 (Jesse Wilson, Report to the Judges, in part)
“5. The said trustee has also filed a Twelfth Account in which he reports as an asset $659.97 "due from the Estate of Jean M. O’Connell". A copy of that "account" is enclosed herewith as Exhibit 3.
6. The Estate of Jean M. O’Connell, deceased, Fiduciary No. 49160, was closed in the Commissioner of Accounts office after approval of a Final Account on May 31, 1994.
7. The said $659.97 was the subject of correspondence between the said trustee and Edward J. White, attorney and co-executor of the estate of Jean M. O’Connell, copies of which are attached hereto as Exhibits 4 and 5. In his letter,
Exhibit 5, the trustee explains that the $659.97 is part of a net income payment of $1,475.97 which the trust owed the estate of Jean M. O’Connell. In that same letter, the trustee states that "At this point in time, I believe Mr. Balderson and I are of one mind that the estate does not owe the trust and the trust does not owe the estate".
Mr. Balderson was a CPA for the estate. Both of these letters were provided to the Commissioner of Accounts by the trustee in support of his "Twelfth Account".
8. The trustee also provided the Commissioner with a copy of a page from a "Jean M. O’Connell estate tax analysis" which shows $659.97 under "Assets" of that estate as "Debt from Harold O’Connell Trust". A copy of that page is attached as Exhibits 6.
From a review of this information the Commissioner finds that there is no evidence to support an assertion by the trustee that the $659.97 is an asset of the trust. To the contrary, it appears that either it is not a debt at all, or, from the estate's point of view, it was money owed by the trust to the estate, i.e. an asset of the estate of Jean M. O’Connell. That estate has been closed for more that six years.
Accordingly, the foregoing Eleventh Account of Anthony M. O’Connell, Trustee has been marked a "Final Account" by the undersigned and is hereby approved as a Final Account in the trust under the will of Harold A. O’Connell and is filed herewith.
In the event that the trustee is successful in recovering $659.97 or any other funds which are proper trust assets to be accounted for, such may be reported to the Commissioner of Accounts by an Amended Inventory and, thereafter, accounted for by proper accounts.”
(Jesse Wilson, Report to the Judges)
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