Shoemaker’s Children
It is interesting to note that the instructions Form 8082 state “… you generally must report items consistent with the way they were reported to you on Schedule K-1.” It goes on to state, however, that you should report “any inconsistency” between your tax treatment and the way the partnership reported on “its return”. Presumably, Mr. Wallis didn’t see the H&K return, but apparently the 1099-MISC was supposed to be enough of a clue.
Joint Extension Payments
It’s not unusual for family businesses or trusts to make estimated tax payments for beneficiaries or family owners. Controllers or trustees charged with that responsibility would be prudent to make those payments as individual, not joint, estimated tax payments. Whoever was making the payments on behalf of Sarah Crane (Angus MacPhail’s ex-spouse) probably wishes they had followed that course.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.