T. Ryan Legg Irrevocable Trust v. Testa

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The T. Ryan Legg Irrevocable Trust appealed a tax on the trust’s 2006 income. The tax commissioner moved to dismiss, arguing that the Board of Tax Appeals (BTA) lacked jurisdiction to hear the appeal because the trust had not shown that the trustee had authorized the filing of the notice of appeal and the petition for reassessment. The BTA denied the motion to dismiss. The Supreme Court affirmed in part and vacated the BTA’s decision in part, holding (1) the tax commissioner failed to prove that the trust’s counsel lacked authority to file the tax appeals; (2) the trust’s capital gain was subject to Ohio income tax on an apportioned basis, but the trust had a legal basis for seeking a reduced Ohio allocation; and (3) the tax assessment did not violate due process or equal protection rights. Remanded to the tax commission for a determination of the proper Ohio allocation. View "T. Ryan Legg Irrevocable Trust v. Testa" on Justia Law