justice2kb
       

 

Actual 12th account

Narative

Anthony M. O'Connell,
Trustee u/wofH. A. O'Connell
216 Governor's Lane Apt 12
Harrisonburg, Virginia 22801
August 9. 1999

Commissioner ofAccounts Jesse B. Wilson III
Deputy Commissioner of Accounts Peter A. Arntson
Fair Oaks Plaza
Suite 500
11350 Random Hills Road
Fairfax, Virginia 22030

Assistant Commissioner ofAccounts Henry C. Mackall
Mackall Mackall Walker & Gibb
4031 Chain Bridge Road
Fairfax, Virginia 22030

Reference:
Trust ulw H. A. O'Connell
Fiduciary Number 21840
Twelfth Account covering the period
1/1/96-12/31/96

"A check for $63.00 is enclosed to file this Twelfth Account. This is not a Final Account.
The accounting for the Trust u/w of H. A. O'Connell was entangled with the accounting of the Estate of Jean M. O'Connell, fiduciary # 49160, by the CPA (firm) I hired and by the lawyer who is co-executor for the Estate:
Ms. Jo Anne Barnes, CPA (firm).
Bruner, Kane & McCarthy, Limited
700 North Fairfax
Alexandria, Virginia 22313
Mr. Edward White, Attorney and Co-Executor
P.0. Box 207
Kinsale, Virginia 22488 (Last known address)
Those who control the entanglements control the people and assets that are entangled. I have experienced the CPA-lawyer entanglements before and know it would be foolhardy to try to sell Accotink (my family's remaining real estate, B8845 p1444 and B8307 p1446) until all the entanglements are removed and the accountings are clear.
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. If you review the attached pages 1 through 17 that are part of this Twelfth Account you may notice that:
  • The lawyer unilateraly hires the CPA into the Estate (page 1).
  • The lawyer will seek my sister's approval to sue me if I don't file the Trust's Seventh Court Account early (page 1). The combined advice of the CPA(firm) and the lawyer force me to file it approximately eighteen months earlier than the Commissioner's scheduled date of October 20, 1993, because I cannnot convince my sister, Jean Nader, that their combined advice is wrong (pages 5,6 and 7). This places the filing of the Trust Account before the filing of the Estate Tax Return that is due on June 15, 1992. This makes it easier to entangle the Trust accounting with the Estate Tax Return accounting and make it appear to my family that the estate was damaged by my management of the Trust.
  • The lawyer's letter of April 22, 1992 lists a Debt from the Harold O'Connell Trust   659.97 (page 3) even though I do not sign or submit the Trust's Seventh Court Account that created the $659.97 debt until May 11, 1992 (page 8). The lawyer's letter of May 19, 1992 makes it appear that he doesn’t know what this $659.97 is about and that it is my fault (pages 9 and 10).
  • This $659.97 debt is reported to the IRS (page 16 ). But when I ask the lawyer and CPA (firm) about this $659.97 debt they avoid it (page 15), don't know what I'm talking about (text box on page 16), or don't respond (page 17).

Do any of you have the power to compel the CPA (firm) and the lawyer to:
1. Explain why they created this $659.97 debt.
2. Explain why I am made to appear responsible for it.
3. Show exactly where this $ 659.97 debt is now.
4. Pay the $ 659.97 back from the estate to the trust.
5.  Do it without inflicting anymore cost and conflict on any member of my family.
I want to keep this simple but you have to understand that the CPA (firm) and the lawyer avoid accountability by using a trusting family member, with no accounting background, such as my sister, Jean Nader, co-executor, to cover for them. Please note the advice that the lawyer expects Jean Nader to rely upon in his letter of April 22, 1992. Jean Nader is innocent and is being used.  She does not understand that she is being used. She is not responsible for what the CPA (firm) and the lawyer did. She did not do the accounting. I did not do the accounting. The CPA (firm) and lawyer did the accounting. They will use Jean Nader again and again and again. She has been led to believe that keeping estate accountings a secrect is being loyal to our mother (which makes me appear disloyal). You have to go around Jean Nader to compel the CPA (firm) and the lawyer to be accountable. Please; positively, absolutely, completely, and without exception, do not allow the CPA (firm) and the lawyer to inflict anymore cost and conflict on any member of my family. If you don't have the power to compel the the CPA (firm) and the lawyer to expose and remove the entanglements they created, please understand how I can't.
I would appreciate any effort you might make. Thank you.

Sincerely,
(seal)
Anthony M. O'Connell,
Trustee u/w of H. A. O'Connell

Copy to:
Ms. Jo Anne Barnes, CPA
Mr. Ed White, Attorney and Co-Executor
Ms. Jean Nader, Beneficiary and Co-Executor
Ms. Sheila O'Connell, Beneficiary

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

IN THE CIRCUIT COURT OF FAIRFAX COUNTY, VIRGINIA
Trust u/w of H. A. O'Connell
Fiduciary # 21840
Anthony O'Connell, Trustee
Twelfth Account
Covering the period from 1/1/96 to 12/31/96
This is not a Final Account

Description                                                                                                             Assets Received
                                                                                                                                    (or on hand)

Balance brought forward from the Eleventh Account:                                                  $ 000.00
(Based on the known information and understanding at that time)

Due from the Estate ofJean M. O'Connell:                                                                    $ 659.97

Are there any other debts which your mother owed the Trust?                                             ?
          (From the lawyer's letter ofMay 19,1999.
           For me to find that out requires that I have access to all
           the estate accountings.)

Known balance due from the Estate of Jean M. O'Connell
at this time:                                                                                                                    $ 659.97

(seal)
Anthony M. O'Connell,
Trustee u/w of H. A. O'Connell

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;

This letter is a rare look at
the secret advice given to
a trusting family member

This letter of April 22, 1992, show that the lawyer knew that
there was a $659.97 debt created by the Trust's Seventh
Court Account (see arrow) before I signed or sumbitted the
Trust's Seven Court Account on May 11, 1992. On May
19, 1992, the lawyer makes it appear to Jean Nader that I am
responsible for the $659.97 debt the CPA (firm) created.

The Trust has no responsibility to the Estate
except, like any other income-producing source
for Jean O'Connell, to report her income to the
Estate. To recognize how outrageous this letter
is please imagine that I am a bank where my
Mother has a saving account

EOWARD J. WHITE
ATTORNEY AT L.AW
118 SOUTH ROVAL. STREET
ALEXANDRIA. VIRGINIA 22314
TELEPHONE 836-5444
April 22, 1992

Mrs. Jean M. Nader
350 Fourth Ave.
New Kensington, Pa. 15068
Re: Disbursement

Dear Jean,
Enclosed is an agreement which should satisfy Tony as to the car. It cannot be any clearer.
Also enclosed is a preliminary analysis of the estate tax, which should be close to being accurate. I do need to check with Jo Ann Barnes as to a technical question as to whether or not any of your father's trust comes into this. I do not think it does, but there have been many changes in the law since that trust was established. I will have to ask her to bill us for that advice and any other technical tax matters I am not comfortable with. I can do most of the rest of the tax work and save the estate some money.
The executors' commission shown on the analysis is not figured on the value of the realty; however it does not include the 5% commission on the receipts of the estate in addition to the inventory.
In order to file le that return and the subsequent Fiduciary Income tax return we will need an accounting from Tony from the date of his last accounting to the date of death. If he does not want to prepare it, I will not agree to any preliminary disbursal to him at all, and will seek your approval to file suit against him to compel the accounting, plus damages to the estate for his delay. Since that trust terminated on your mother's death, his final accounting is due now and not in October.
There will be no further explanations or written entreaties to him as far as I am concerned. He has the duty and ,he will perform it under a court order if necessary. Of course he will furnish that receipt.
The preliminary analysis contains three alternatives on Accotink at the bottom for your consideration.
In the event that we do seek a reduction in the assessment Tony will be given written notice that his prompt cooperation is necessary and that if he fails to cooperate that he is aware of the adverse consequences to the estate and is responsible for them.
As far as further steps are concerned, we have a lot to do. No gift tax returns were filed for 1989 and 1991 which will have to be done. The results of those gifts are factored in under "Unified Credit used for gifts 9,784".
The paper trail in the court and IRS is as follows:
File Estate tax by June 15, 1992
File First Accounting (16 months after qualification but can be sooner)
Ask for posting of Debts and Demands against the estate.
File Fiduciary Income tax returns for period 9/15/91-9/15/92, due January 1, 1993.
File Motion for a Show Cause why distribution should not be made. Submit Show Cause Order.
Request Executor's exoneration letter from IRS and Virginia.
Obtain closing letter from IRS and Virginia as to estate tax returns.
File 1993 Fiduciary tax returns (Sept. 1992-distribution)
File for Order allowing distribution.
Distribute estate.
File Final Accounting.
Normally distribution is withheld until the Order of Distribution is entered. As I indicated the creditors have one year to press claims against the estate. No prudent executor will distribute before that period, the entry of the Order of Distribution and the receipt of the tax closing letters.

Sincerely,
(seal)
Edward J. White
EJW/e
Encl.

JEAN M .O'CONNELL ESTATE TAX ANALYSIS  
   
CASH(?), NOTES, STOCKS & BONDS.  
   
ck Wash Gas Light Co. 8/1/91  
105.00
   
ck Signet 8/5/91  
39.00
   
ck A. G. Edwards 8/15/91  
2,346.63
   
ck Kemper Mun Bond Fund 4/30/91  
162.86
   
ck Kemper Mun Bond Fund 5/31/91  
162.86
   
ck Kemper Mun Bond Fund 7/31/91  
162.86
   
ck Kemper Mun Bond Fund 8/30/91  
162.86
   
Ck Nuveen Fund 3/1/9  
63.00
   
Ck Nuveen Fund 5/1/91  
63.00
   
ck Nuveen Fund 6/3/91  
63.00
   
ck Nuveen Fund 8/1/91  
66.50
   
ck Nuveen Fund 9/3/91  
66.50
   
ck American Funds 9/9/91  
424.76
   
Sovran Bank #4536-2785  
3.310.46
   
First Virginia Bank #4076-1509  
22,812.52
   
Fx Co. Ind Dev Bond  
109,587.00
   
FranklinxVa. Fund 4556.001 sh  
50.507.84
   
Investment Co. of America 3861.447 sh  
65.663.91
   
Kemper Mun Bond Fund 2961.152 sh  
30,396.23
   
Nuveen Premium Inc Mun Fund 700 shWashington Gas Light Co. 200 sh  
6.450.60
   
Signet Banking Corp 198 sh  
6.375.00
   
Lynch Properties note  
4.331.25
   
Travelers Check  
518.903.26
   
1988 Plymouth Van  
8.000.00
   
Am Funds 5/10/91  
326.60
   
USAA Subscriber savings acct  
25.10
   
SUB TOTAL  
830,599.10
   
OTHER ASSETS  
   
1990 Virginia Tax refund  
1,605.58
   
Debt from Harold O'Connell Trust  
659.97
   
Blue Cross refund  
88.78
   
SUB TOTAL  
2354.33
   
JOINT ASSETS  
   
Hallmark Bank #1107849600  
40,796.81
   
REAL ESTATE  
   
15 acres Fairfax Co. Va. 53.9006% interest  
323,403.60
   
TOTAL ASSETS  
1,197,153.84
   
--------------------------------------------------------  
   
DEBTS  
   
Colonial Emerg Phys (med bill)  
10.40
   
Fairfax Circ Ct. letters  
14.00
   
Jean M. Nader probate tax reimb  
1,269.00
   
Sovran Bank Car loan payoff  
1,364.97
   
Checks  
15.89
   
Commissioner of accounts Inventory  
61.00
   
IRS 1991 1040 return  
15,332.00
   
Va. Dept Tax 1991 return  
2,856.00
   
Jean M. Nader, hills pd  
8,559.00
   
Sheila Ann O'Connell-Shevenell, cem bill  
475.00
   
Co-Executors' Commission  
41,529.96
   
Commissioner of Accounts fee for Accounting  
1,048.25
   
TOTAL DEBTS AND EXPENSES  
72,535.46
   
JEAN M. O'CONNELL ES'I'A'l'E TAX ANAI.YSIS [page 2]  
   
TAX COMPUTATION
 
   
GROSS ESTATE  
1,197,153.84
   
DEBTS & EXPENSES  
72,535.46
   
   
ACC 75% ACC 60%
TAXABLE ESTATE  
1,124,615.38
1,043,767.48 995,256.94
TENTATIVE TAX 41% bracket  
396,893.53
363,744.67 343,950.21

Unified Credit before gift comp
192,800
   
Unified Credit used for gifts
9,784
   
UNIFIED CREDIT  
183,016.00
183,016.00 183,016.00
CREDIT FOR VIRGINIA TAX  
40,375.58
35,201.12 32.934.39
NET FEDERAL TAX  
  127.999.82
VIRGINIA TAX  
  32.934.39
---------------------------------------------- ------ ------------ ---------- ---------
TOTAL ESTATE TAXES  
213,877.53
180,728.67 160,934.21
   
   
   
   


  Pages 1, 2, 3, 4

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

My advice to my sister that the Trust's Seventh Court
Account is not due until October 20, 1993, even with
the documentation from the Commissioner of
Accounts Office, is no match against the combined
advice ofthe CPA (firm) and the Lawyer.

Anthony O'Connell
6541 Franconia Road
Springfield, Virginia 22150
May 6, 1992

Mrs. Jean Nader
350 4th Avenue
New Kensington. Penn 15068

Dear Jean,
1992.05.06   (Anthony O'Connell to Jean Nader) (Copy to Edward White)
"I will send you and Mr. White a copy of the court accounting from
the trust for the period 1/1/91 thru 12/31/91 by the end of this
month. If that is not soon enough please let me know and I will do
what I can. It is all but complete but I want to go over it again
and possible make some adjustments. The estate may owe the trust
something. That would be to the beneficiaries benefit because that
would avoid the estate tax so the eventual distribution to the
beneficiaries would be greater. As you can see from the attached
enclosure, the Commissioner of Accounts has advised me that this
account is 'not due until 10-20-93.
If there is any other information Mr. White needs from the trust,
he should write to me, the trustee, telling me what it is. If he is
not wi 11 lng to do this, I can not be responsibl e. Mr. White
position as co-executor allows him no authority over the trust. He
should not charge us extra to find that out.
Please tell me if there is anything else you need besides the 1991
court accounting from the trust, or of any other way I can be of
help to you. For a second opinion on anything, I would suggest you
call Mr. Ed Prichard of McGuire, . Woods, Battle & Boothe at {703}
712-5000. I will take care of any fees you incur.

Love,
(seal)
Anthony O'Connell "
Enclosure (1)
Copy
Mr. White

  Page 5

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

My advice to my sister that the Trust's Seventh Court
Account is not due until October 20, 1993, even with
the documentation from the Commissioner of
Accounts Office, is no match against the combined
advice ofthe CPA (firm) and the Lawyer.

COMMISSIONER OF ACCOUNTS OFFICE
CIRCUIT COURT OF FAIRFAX COUNTY
FAIR OAKS PLAZA, SUITE 500
11350 RANDOM HIl.LS ROAD FAIRFAX, VIRGINIA 22030
TEl.EPHONE: (703) 385.0268
4-22-92

Anthony M. O'Connell
6541 Franconia Road
Springfield, VA 22150

RE: Harold 0'Cnnell Trust
FIDUCIARY NO: 021840
Please be advised that the 6th Accounting, filed with this
office on 6/28/91, and posted for 7/1/91, was approved on
4/18/92 , and was, or is being, sent to the Clerk of
the Circuit Court of Fairfax County, for filing therein,
on 4-22-92

Jesse B. Wilson, III .
Commissioner of Accounts
Robert J.McCandlish, Jr.
Deputy Commissioner of Accounts

Supporting vouchers
previously returned
Supporting vouchers
previously returned (check nark)
Your next Accounting is due in this office by 10-20-93

  Page 6

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

(The CPA (firm)'s advice to file the Trust's Seventh Court Account on or before April 30, 1992,
rather than on or before the scheduled date ofOctober 20, 1993, is similar to the lawyer's
advice ofApril 22, 1992: In order to tile that return and the subsequent Fiduciary Income
tax return we will need an accounting from Tony from the date of his last accounting to
the date of death. If he does not want to prepare it, I will not agree to any preliminary
disbursal to him at all, and wiD seek your approval to tile suit against him to compel the
accounting, plus damages to the estate for his delay. Since that trust terminated on your
mother's death, his final accounting is due now and not in October [October 20, 1993].
From the lawyer's letter of April 22, 1992)

(My advice to my sister that the Trust's Seventh Court Account is not due until
October 20, 1993, even with the documentation from the Commissioner of Accounts
Office, is no match against the combined advice of the CPA (firm) and the Lawyer.)

BRUNER, KANE & McCARTIIY, LTD.
INSTRUCTIONS FOR FlLNG COURT ACCOUNTING

1. All enclosed copies should be signed and dated.
2. File on or before April 30, 1992 or [ ] as soon as possible.
We recommend you mail ·the accounting, vouchers and payment by CERTIFIED MAIL,
RETURN RECEIPT REQUESTED and keep your receipts.
3. Remit $165 with accounting, payable to: Commissioner of Accounts
(Trustee crossed out the $165 amount and wrote "50" under it because the filing fee was, I believe, $50)
4. File two copies witb:
[ ] Henry A. Thomas, Esq.
Commissioner of Accounts
520 King Street • Suite 306
Alexandria. Virginia 22314
[ ] Jesse B. Wilson, III, Esq.
Commissioner of Accounts
Fair Oaks Plaza • Suite 500
11350 Random Hills Road
Fairfax. Virginia 22030
[ ] J Gordon P. Peyton, Esq.
Asst. Commissioner of Accounts
1216 King Street
Alexandria, Virginia 22314
[ ] USE ATTACHED ENVELOPE
[ ] You should submit vouchers or cancelled checks as evidence of disbursements.
5. Each executor or beneficiary should be given a copy.

  Page 7

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

This makes me appear responsible for what the CPA (firm) and
the lawyer did. The CPA (firm) does have to sign as Preparer. You
could not tell from looking at this that, (1) I was forced to submit it
approximately 18 months before it was due, that (2) an entanglement
was created, and that (3) I don't have the power to clean it up.

IN THE CIRCUIT COURT OF FAIRFAX COUNTY, VIRGINIA
ESTATE OR TRUST U/W OF H.A O'CONNELL
ACCOUNT OF Anthony O'Connell. Trustee FlDUCIARY # 21840
Number of this account Seventh Account
Covering period from 1/11/91 to 12/31/91
DESCRIPTION
ASSETS HELD ON DECEMBER 31, 1991
FOR FUTURE ACCOUNTING
Lynch Note                                                                                                                   $  428,277.21
46.0994% interest in 15 acres                                                                                             34,277.21                                
Cash • Continental checking                                                                                               43,302.55
Computer                                                                                                                              2,100.00
Payable to the Estate of Jean M. O'Connell
Deficit per 3rd Account                                                   $ (5,906.72)
Deficit per 4th Account                                                         (687.03)
Income per 5th Account                                                     (5,796.98)
Deficit per 6th Account (restated)                                       (2,908.97)
                                                                                         $ (3,705.74) 
Income per 7th Account                                                        5,181.71     
                                                                                         $     1,475.97
           
TOTAL ASSETS HELD FOR FUTURE ACCOUNTING                                       $   508,254.31
TOTALS                                                                                             $   675,552.42   $   675,552.42

Vouchers in support of disbursements are submitted herewith.

5/11/92                       (seal)
Date                            Anthony O'Connell, Trustee

  Page 8

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

This makes it appear to my
sister that I am responsible
for what the CPA(finn) did.

Due to a personal vendetta with me, Mr. O'Connell, obviously
without the sanction ofhis counsel, has decided to voice any
conceivable complaint about the administration of his mother's
estate by his sister and myself. All ofhis efforts have been
rebuffed.......The Show Cause and Order of Distribution
procedure is a profonna matter for the benefits of creditors and
Mr. O'Connell is not entitled to notice unless he is a creditor.. ,"
From the lawyer's letter of November 12,1993 to Judge Bach.

EDWARD J. WHITE
ATTORNEY AT AW
118 SOUTH ROYAL. STREET
AL.EXANDRIA. VIRGINIA 22314
TELEPHONE  836-15444
May 19, 1992

Mr. Anthony M. O'Connell
c/o Edgar A. Prichard, Esq.
8280 Greensboro Dr.
#900
McLean, Va. 22102

Re: Estate of Jean M. a' Connell
Dear Mr. O'Connell,
In your letter of May 6 to Jean you asked that I communicate
with you with regard to the Harold O·Connell Trust.
I am trying to prepare the estate tax, and as usual in these
cases, there are problems trying to understand the flow of debts
and income.
I do have a few questions which are put forward simply so that
the figures on the Trust·s tax returns and accounting will agree
with the estate's.
1. The K-1 filed by the Trust for 1991 showed income to your
mother of $41,446.00. The Seventh Accounting appears to show a
disbursement to her of $40,000.00 plus first half realty taxes paid
by the trust for her and thus a disbursal to her of $1794.89. If
these two disbursals are added the sum is $41,794.89. This leaves
$348.89 which I cannot figure out. It could well be a disbursal of
principal and not taxable.
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?

3. On the Seventh Accounting "Income per 7th Account'· is'
shown as $5181.71, but I cannot figure that one out either.
I am of the opinion that the estate owes the trust for the
second half real estate taxes from September 15, 1991 through
December 31, 1991 in the amount. of $1052.35. This is shown on your
accounting a disbursed to the heirs. Should this be paid back to
the heirs or to the Trust?
I believe that the income received from the savings accounts
from September 15 to the date the various banks made their next
payment to the Trust (9/30 and 9/21) should be split on a per diem
basis, since the Trust terminated on her death. This will be a
small amount of course.
Are there any other debts which your Mother owed the Trust?
I realize that Jo Ann Barnes prepared this and if you
authorize it I can ask her to help me out.

Please understand that I have no problem with the Accounting,
I'm just trying to match thingS up. In the long run, since the
beneficiaries are the same, the matter is academic.
Please send the bill for the appraisal whenever you receive
it. Jean is filing the Fairfax form for re-assessment in her
capacity as a co-owner in order to give us a better basis to get
this assessment changed and to meet the county's deadline. It will
state that the appraisal you have ordered will follow. I think
this will be to all of your benefit in the long run.

Sincerely
Edward J, White
EJW/e
Copy to: Jean M. Nader

  Pages 9. 10

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Anthony O'Connell
6541 Franconia Road
Springfield, Virginia 22150
May 29, 1992

Mr. Ed White, Attorney
118 South Royal street
Alexandria, Virginia 22314
Reference: Your letter of May 19, 1992

Dear Mr. White:
1992.05.29   (Anthony O'Connell to Edward White) (Copies to E. A. Prichard, Forrest Balderson, Jean Nader and Sheila O'Connell)
"Thank you for your letter concerning the Seventh Trust accounting. In the future would you please send letters concerning me or the trust directly to me? It will save the beneficiaries attorney expense. I would appreciate you sending a copy to Mr. Prichard. I talked with Mr. Forrest Balderson today. Mr. Balderson prepared the account and states that the numbers are correct. He reminded me that court accounting and taxable accounting are different animals and often do not match. I believe this applies to your questions in paragraphs 1 and 2. Please feel free to call Mr. Balderson at (703) 549-7800.
I will try to address your paragraph 3. Rather than wait until the end of each year and calculate the exact net income of the trust to be distributed to my mother, I estimated the net income in April so I could make the distribution to her immediately after the trust received the annual April payment. The consequent year end adjustments were:
Third Account                $ -5,906.72 (Mother owed to trust)
Fourth Account               $  - 687.03 {Mother owed to trust)
Fifth Account                $ +5.796.98 {Trust owed to mother)
Sixth Account               $  -2.908.97 {Mother owed to trust)
Net carryover                 $ -3.705.74 {Mother owed to trust)
Seventh Account,1991  $ +5.181.71 {Trust owed to mother}
The net carryover of $-3.705.74 up to the seventh account combined with the $ +5.181.71 of the seventh account netted $1.475.97 the trust owed my mother. This is the $ 1,475.97 check I mailed to you. Mr. Balderson tells me he called you concerning the real estate taxes before he did the account and discussed it with you. Is it necessary to change it now? My trust accounting is on a cash basis. I think a per diem split of the September interest would be accrual accounting. I don't think I can mix the two methods. If the Commissioner of Accounts says it's appropriate, it's fine with me. 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.
I have a few questions concerning my mother's 1991 tax return.
1. My copy shows she should be penalized by IRS and Virginia because adequate estimated tax payments were not made after her death. I believe my sister is convinced I am responsible for this. If it is my fault, I will pay for it out of my pocket. I feel the other beneficiaries should not be charged for the negligence of another. Would you please lay out the specifics on what happened?
Please be very specific.
2. My copy 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 S 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?
3. On Schedule B under dividend income, what is the significance of "**BAL ON 1040 OF JEAN NADER, SSN 225 50 9052"?  I look forward to your response."
I look forward to your response.

Yours truly,
(seal)
Anthony O'Connell

Enclosures:
Your letter of May 19, 1992
IRS Form 1040, Schedule B and Wavier of Penalty Request for
Jean O'Connell, 1991. The other IRS forms attached to this return
were not included in this enclosure.

Copies to:
Mr. Ed Prichard
Mr. Forrest Balderson
Ms. Jean Nader
Ms. Sheila O'Connell

  Page 11, 12

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Anthony O'Connell
6541 Franconia Road
Springfield, Virginia 22150
(703) 971-2855
January 21, 1993

Ms. Joanne Barnes
Bruner, Kane & McCarthy, LTD
Post Office Box 1250
Alexandria, Virginia 22313

Dear Ms. Barnes:
The Commissioner of Accounts Office tells me they can not approve
the Seventh Account your office prepared (enclosure 1). I
understand the court account requires a separation of income and
capital. Would you be willing to have these corrections made?
Would you be kind enough to answer a question of mine on total
distributions? .
The 1991 "TOIAL DISTRIBUTIONS" amount in the Seventh Account, page
3, is $148,589.78, and the "Total distributions" amount on Form
1041, Schedule B, line 13, is $146,795. I understand the Court
Account amount of $148,589.78 but not the Form 1041 amount of
$146,795. Because the "Total distributions" on Form 1041 includes
"Other amounts paid, credited, or otherwise required to be
distributed"* from 1ine 12, I'm thinking the total distributions on
Form 1041 should be $150,065.75. I'm probably wrong, so please tell
me why.

     $ 40,000.00  income distribution to primary beneficiary
      105,000.00 distributions to secondary beneficiaries
          1,794.89 real estate taxes-1st half, primary beneficiary
   ($146,794.89)
          1,794.89 real estate taxes-2nd half, secondary beneficiaries
   ($148,589.78)
        *1,475.97 balance of income owed my Mother before her
                         death in 1991 but not paid until 1992.
    $150,065.75

*Would you tell me how I should treat this $1,475.9h-with respect
to a K-1 and in what year? I thank you in advance.

Sincerely,
(seal)
Anthony O'Connell
Enclosure: Commissioner of Accounts letter of January 12, 1993

  Page 13

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

The CPA firm does not mention the $816.00 or the $659.97 in this letter. I could not find
the $816.00 or the $659.97 in the three spreadsheets I obtained. I believe the CPA firm
intentionally had me pay from the trust to the estate, more than necessary, so as to create a
accounting entanglement of a debt ($1,475.69 - $816,00 = $659.97 overpayment or debt

KELLER BRUNER & COMPANY, P.C.
February 12. 1993
Mr. Anthony O'Connell
6541 Franconia Road
Springfield. Virginia 22150
Re: Trust u/w of H. A. O'Connell

Dear Mr. O'Connell:
Joanne Barnes has asked me to respond to your letter of January 21. 1993 concerning the
differences in the "Total distributions· from the court accounting and the fiduciary return. I will
at~o try to answer the other questions in your letter.
The amount on Page 2. Line 12 of Form 1041 in the amount of $146,795 is the figure on a
workpaper which I previously gave to you (copy attached). Listed below, again in another
format, is how that $146,795 was arrived at:

Mrs. Jean M. O'Connell
     Check #230                                                                             $ 40,000.00
     Check #251 (R E taxes)
          ($3,330 x 53.9006%)                                                               1,794.89
Sheila O'Connell
     Check #268                                                                                 20,000.00
     Check #276                                                                                 15,000.00
Jean Nader
     Check #267                                                                                 20,000.00
     Check #277                                                                                 15,000.00
Anthony O'Connell
     Check #269                                                                                 20,000.00
     Check #278                                                                                 15,000.00
     Total amount of checks                                                          $ 146,794.89

The $146,794.89 or $146,795 was the tow amount of cash distributed to the beneficiaries or
heirs of this trust during the calendar year 1991.
The $1.794.89 of reaJ esta~ taxes which you as Trustee paid on behalf of the three heirs
(Shelia O'CoMell, Jean Nader and Anthony O'C,onnell) was an obligation owed directly by the
three heirs as your mother's interest in this real ~sta~ passed directly to each of you at her death.
When you received Lhe K-l's for 1991, attached was a schedule for each of you to repon 1/3ed
of these real estate taxes on your individual income tax returns.
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 SixLh Account $3,70S.74 but you had underdistributed $5.181.71 of cash
through her dale of death. The $1.475.91 just completes what was due her. The transfer to her
estate has no tax effect for eiLher 1991 or 1992.
I hope that the foregoing has answered your variof IRS formous questions. I am also returning to you, the
letter which you sent with your letter of January 21, 1993. I have made a copy of it for our
files

Very truly yours,
KELLER BRUNER & COMPANY, P.C.
(seal)
Forest N. Balderson
FNB/boc
Enclosures

  Page 14, 15

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Your question regarding the wording of Schedule F of the estate tax return which was filed
in September 1992, implying something or another, makes no sense at all.
From the lawyer's letter of July 20, 1995
Note: The lawyer told the IRS in Schedule F of (1) the Estate Tax Return of September 1992, in
(2) the First Amended Estate Tax Return ofJune 1993, and in (3) the Second Amended Estate Tax
Return of April 1995, that there was a:
Debt due from Harold O'Connell Trust 659.97

Estate of: JEAN M. O'CONNELL.
SCHEDULE F - Other Miscellaneous Property Not Reportable Under any Other . . .

                                         Description                                                            Value
1  1988 Plymouth Van                                                                                   8,000.00
               INCOME WITH RESPECT TO DECEDENT
2  Interest owed on Lynch Properties                                                          
    Note described in Schedule C                                                                  18,150.57
3  Virginia 1990 tax refund                                                                            1,605.58
4  Blue Cross payment due                                                                                 88.78
4  Interest due Harold O'Connell Trust                                                        816.00                     
5  Debt due from Harold O'Connell Trust                                                    659.97 
 
             (TOTAL IRD 2l,320.90)
6  TWO CEMETARY LOTS FAIRFAX MEMORIAL PARK
    FAIRFAX VIRGINIA                                                                               2,000.00
    AMENDED ITEM

TOTAL. Also enter on part 5 ...                                                                    31,320.90

  Page 16

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

The CPA (firm) did not
respond to this letter.

Anthony O'Connell
216 Governors Lane
Suite 12
Harrisburg, Virginia 22801
March 4, 1996

Ms. Jo Anne Barnes, CPA
Bruner, Kane & Mccarthy, Limited
700 North Fairfax
Alexandria, virginia 22313
(703) 549-7800

Ref: Estate of Jean O'Connell
Trust u/w of Harold O'Connell

Dear Ms. Barnes:
Would you be kind enough to explain item 4 and 5 of Schedule F,
of my mother's estate tax return?

4 Interest due Harold O'Connell Trust               816.00
5 Debt due from Harold O'Connell Trust           659.97

I thank you in advance.

Sincerely,
Anthony O'Connell


Enclosure: Schedule F of the estate tax return of Jean O'Connell

  Page 17