The only chance the family has is transparency and accountability in exposing Bk467p191


"2. My copy [Jean O'Connell's 1991 IRS Form 1040] also does not show the principal of $125,188.17 paid to my mother by the Lynch Note in April of 1991. It does show the interest. With a gross profit percentage of .79 on the installment sale, about $98,898.65 of the $125,188.17 should have been reported on line 13 of the 1040 as a capital gain. It appears that this omission is up and above the penalties and interest already acknowledged. Why was it not reported? Will you amend the return?"
(1992.05.29  Anthony O'Connell to Edward White, in part.)

"With regard to the income tax matter and the capital gain from the receipt of principal on the Lynch note in April 1991, I was following the 1990 return and simply did not pick up the fact that there was a principal payment in 1991. I will most certainly pay any interest and penalty which might accrue in this regard, and sincerely appreciate your calling it to my attention."
(1992.06.11  Edward White to Anthony O'Connell, in part.)


"The Lynch note will not produce any capital gain since it was taxed in the estate as part of your mother's assets."
(1992.11.13  Edward White to Anthony O'Connell, Jean Nader, and Sheila O'Connell, in part.)

"The Lynch Note to the estate, a result of the installment sale of my mother's residence on 4/21/88, carries with it a taxable capital gain. The IRS requires that this capital gains tax be paid by the estate or the beneficiaries if the taxable capital gain is passed through the estate to the beneficiaries before the end of the tax year.
The gross profit percentage on the sale was seventy-nine percent (79%). The payoff of the Lynch note to the estate on 4/21/92 was $545,820.42 of which $45,067.74 was income and $500,752.68 was capital. Of that $500,752.68 in capital, 79% or $395,594.62 is taxable capital gain."
(1992.11.16  Anthony O'Connell to Edward White, in part.)

"Regretfully I have to amend my letter of Friday. There is no "stepped up basis" on the Lynch note according to the accountants who are preparing the fiduciary income tax return."
(1992.11.16   Edward White to Anthony O'Connell, Jean Nader, and Sheila O'Connell, in part)

Not sunshine
"As far as an income prediction for the Estate is concerned, I can make no intelligent prediction since I do not know how long it will remain open. I have been continuously burned in making gratuitous comments about the tax liability of the heirs, and counsel and other attorney friends have stated to me, that given the performance of Mr. O'Connell, that I should make no comment at all. I tried to be helpful, but that did not work. I can only say that had I not been adamant about re-valuing the Accotink property, Mr. O'Connell's initial approach would have cost this estate dearly. From the comments in his recent demands for "information", I can see that he is jumping to conclusions based on no knowledge at all. I will not reply directly to him on any future aspect of this estate. As a matter of fact I am precluded as an attorney from dealing with an adverse party who is represented by counsel. I have no intentions of having him dictate the duties of the fiduciaries. If his counsel wishes to discuss anything, I am certainly available."
(1993.02.02   Edward White to trusting family member Jean Nader, in part)

Will present powers recognize that mistakes were made and they don't want this to happen again?

Justice, the Goddess Athena, is on the top of court houses all over Virginia. This beautiful one is in Harrisonburg, Virginia.