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Department of the Treasury
Internal Revenue Service
Ann Mr Donald Mavrides
P. 0. Box 9112 Room 825
J.F.K. Post Office
Boston, MA 02203
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January 25, 1998
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Mr. Donald Mavrides,
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I agree that payroll taxes should have been paid by the Trustee as their Fiduciary duty. On January 29, 1998 there is a Creditors' hearing to determine legitimate claims and amounts to be distributed from the Trustee to the Creditors. A determination of amounts due to the IRS will be approved on that date. According to the Examiner appointed by the court on January 9, 1996, there were excess funds to cover all payroll taxes. See attached Three Month Budget jointly prepared by the Examiner and the Certified Public Accountant of V&M Management, that identifies an allocation to pay payroll taxes. As of January 1996,1 was placed under the supervision of a Court appointed Examiner who reviewed and approved payment of all invoices in excess of $500 and checks in excess of $2,000. On April 1, 1996 the Trustee, Stephen S. Gray, was appointed and the Examiner was released.
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Please refer to case no. 96-10123-CJK, the Transcript of Confirmation Hearing on Joint Plan of Reorganization of Stephen S. Gray, Chapter 11 Trustee, (pages 70,73,74,77) dated September 26, 1997. The Court discusses on page 70 that tax credits apply only to one who has site control; defined as ownership on page 73. The Court resolves the question of site control and ownership on page 77, which states "Mr. Gray has site control as an owner. He is the owner in his capacity as Trustee of the debtor."
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The Trustee completed financial statements and tax returns for tax years ending December 31, 1995 and December 31, 1996 on June 13, 1997 and July 31, 1997, respectively. The December 31, 1996 statement identifies net profit of $838,033. This net profit results from the Trustee acting fraudulently in not paying payroll and real estate taxes, and denying the residents critical services or rehabilitation of 20 vacant units for one year. If the IRS would refer to V&M's tax returns, tax identification number 04-2819605, you will note net losses for the last ten years. (See December 20, 1995 HUD letter prepared by V&M's CPA demonstrating prior year losses.) None of the $838,033 in cash was distributed to me as an owner of a Subchapter S Corporation during 1996 to the present.
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I am currently bankrupt and unable to secure a CPA or tax counsel to address these issues; therefore, I turn to the IRS for help in answering the following questions: 1) If Stephen S. Gray is the owner at the time of appointment as Trustee, is the Trustee responsible for all tax liabilities? 2) Does the Trustee have a Fiduciary duty to pay all taxes and valid liabilities of a Company that he is responsible to run as appointed by a Court? 3)Based on the $838,033 in cash, am I required to pay personal income taxes on net profits of a Subchapter S Corporation when no cash was distributed to me? 4) Am I responsible for taxes on net profit of a Company for whom I am not an owner according to the Court? 5) Can an entity show net profits when there are outstanding tax liabilities that are not reflected in the financial statements?
Please advise. If the IRS determines that the net profit of December 31, 1996 belongs to me as the owner; I understand that I will owe taxes on the $83'8,033 after I receive the cash distribution from the Trustee for the full amount of $838,033. I await your response and appreciate your assistance in resolving this matter.
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Alphonse Mourad Taxpayer
IRS 125.doc
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Date: Aug 8, 2008
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ALPHONSE MOURAD
125 WEST STREET
HYDE PARK, MA 02136
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IF YOU WRITE OR CALL US,
refer to this information Number of this letter: 915(DO) Tax period(s) ended; 199612 199712
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For assistance you may call;
Name:Joan Ferraro Telephone Number: (617)316-2273
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Dear ALPHONSE MOURAD:
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We are enclosing two copies of our report of income tax examination changes explaining the action we took on your tax return. Please read this report and decide whether you agree or disagree.
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IF YOU AGREE with the changes in the report, you should sign, date, and return one copy to us within 30 days from the date of this letter. If you owe more tax, please include your payment for the full amount you owe; this will limit interest and penalty charges.
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IF YOU CAN'T PAY the full amount you owe now, pay as much as you can. If you want us to consider an installment agreement, please complete the endosed Form 9465, Installment Agreement Request. If we approve your request, you will be charged a $43 user fee to help offset the cost of providing this service. We will take the fee from your first installment payment. Penalties and interest will continue to increase until you pay the full amount you owe.
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IF YOU DON'T AGREE, within 30 days from the date of this letter, you should do one of the following:
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1. Mail us any additional information.
2. Discuss the report with the examiner.
3. Discuss your position with the group manager.
4. Request a conference with an appeals officer, as explained in the enclosed Publication
5. IF YOU DON'T TAKE ANY OF THE ABOVE ACTIONS
within 30 days we will process your case based on the enclosed report. You will then receive a statutory notice of deficiency that allows you 90 days to petition the United States Tax Court. If you allow the 90-day period to expire without petitioning the Tax Court, we will bill you for any additional tax, interest, and penalties.
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JFK Federal Building
Boston, MA 02203 Letter 915(DO)(CG) (Rev. 9-96)
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If you write us about your case, please the most convenient time to call in case we enclosed an envelope for your convenience. the person shown above. Include your telephone number and
need more information. If you prefer, you may telephone.
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Stephen Daige District Director
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Enclosures:
Examination Form 9465 Publication Envelope
Report (2) 5
__________________________________________________



JFK Federal Building
Boston, MA 02203
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Letter 915(DO)(CG) (Rev. 9-96)
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Appeals Office
Small Business / Self Employed
10 Causeway Street
Room493
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Person to Contact:
Vemon J Smith
Boston, MA 02222
Employee ID Number: 04-55132
February 6, 2001
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AP:SB:BOS:VJS
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Alphonse Mourad
125 West Street
HydePark,MA 02136
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Tax Period(s) Ended:12/1996-12/1997 Date and Time of Conference: 9:30 AM March 15, 2001
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AlphonseMourad:
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I scheduled the conference you requested on this case for the date and time shown above. Please let me know within 10 days from the date of this letter whether this is convenient. If it is not, I will be glad to arrange another time.
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This conference will be informal. You may present facts, arguments, and legal authority to support your position. If you plan to introduce new evidence or information, send it to me at least 10 days before the conference. Statements of fact should be presented as affidavits or signed under penalties of perjury.
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You can authorize an attorney, certified public accountant, or person enrolled to practice before the Internal Revenue Service to represent you at the conference. Your authorization should be made on a Form 2848 (Power of Attorney and Declaration of Representative), Form 8821 (Tax Information Authorization and Declaration of Representative), or a similar document.
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I hope our conference will resolve your case. Call me if you have any questions or need additional information.
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Sincerely,
Vemon Appeals Office
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965 - Non Docketed Letter (Rev. 05/1994)
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Alphonse Mourad
125 West Street
Hyde Park, MA 02136
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Mr. Stephen Daige District Director Internal Revenue Service New England District Boston, Mass.
SS 034-32-0832 Letter No. 915 (DO) (CG)
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Re: Appeal of Alphonse Mourad from Determinations of the IRS Dear Mr. Daige: By way of this letter, I hereby amend my previously submitted appeal and give you notice that I am continuing to appealing certain adverse administrative rulings of the Internal Revenue Service, and in particular, the following findings effect and rulings of law from determinations made by the IRS in conjunction with matters concerning V&M Management, a sub-chapter S corporation of which I am the sole stockholder.
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1. Did the IRS disallow an investment interest expense of $965,226 in 1994, and if so, was that disallowance in error?
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2. Did the IRS find as a matter of fact that Mourad did not utilize a carry forward to 1995 of the investment interest expense of $965,226, and if so, was that finding in error?
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3. Was the finding by the IRS that there was a capital gain of $2,088,554 from the sale of corporate assets in error?
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4. Was the denial of Mourad's claim that the alleged capital gain of $2,088,554 arose solely from HUD subsidies and tenant rentals in error?
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5. Did the IRS find as a matter of fact that Mourad did not apply the $965,226 in 1995 against a capital gain of $2,088,554, and was that finding in error?
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6. Was the finding by the IRS that a capital gain of $2,088,554 for 1996 and 1997 was attributable to Mourad in error?
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7. Was the finding by the IRS that profit aod losses from the Mandela Apartments, the sole asset of the sub-chapter S corporation, continued to flow through Mourad after Mourad had been divested of all legal and equitable interests in the property by the bankruptcy court in error?
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8. Was the ruling that Mourad was not entitled to the benefits of the Low Income Housing Credit (Housing Tax Credit) in error?
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9. Was the ruling by the IRS that Stephen Gray, acting as United States Trustee, was entitled to the Housing Tax Credit, in error?
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10. Was the ruling by the IRS that Stephen Gray was entitled to the Housing Tax Credit for 1998 when he dissolved his partnership with Beacon Management on December 31,1997, in error?
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11. Was the ruling by the IRS that any party other than Mourad, holding the assets as a trustee or owner, was entitled to the Housing Tax Credit in error?
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12. Was the ruling by the IRS that the requirement that an owner hold the property for more than ten years in order to become entitled to the Housing Tax Credit did not apply to either Stephen Grey or Beacon Management in error?
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13. Was the finding by the IRS that the bankruptcy proceeding did not create a separate taxable entity when the Trustee assumed all title and interests in the property, and Mourad was denied the benefits of the Housing Tax Credit, in error?
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14. Was the finding that the IRS did not waive all claims against Mourad at the September 26,1997 Confirmation Hearing in error.
As you may be aware, I have been unable to obtain the assistance of counsel to represent me in this matter. Therefore, I would request permission to file an amended notice of appeal within thirty days after I have had the opportunity to at least consult with persons who may be able to advise me in this matter. Further, if this notice of appeal is procedurally defective in some fashion, I would request that your office advise me of the proper procedure, and that I be permitted to resubmit a notice of appeal within thirty days of such advice.
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Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct and complete.
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Thank you for your attention to this matter.
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MCT'D.RECTOR
V. UPLAND DISTRICT
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Alphonse Mourad
125 West Street
HydePark,MA
02136
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September 8,2000
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Mr. Stephen Daige District Director For New England District JFK Federal Building Boston, MA 02203
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Re: Letter 915(DO)
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Dar Mr. Daige,
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Alphonse Mourad, President ofV&M Management, Inc. (Sub Chapter S Corporation) hereby protests and appeals the IRS findings to the Appeals Office. Mourad hereby request that all records and documents regarding V&M Management, Inc. and Mourad as a personal shareholder be transferred to the Appeals Office.
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In a June 24,1999 letter, Greg Smith of the IRS states "During bankruptcy proceedings, income generated in an S Corporation flows through to the shareholders). In the case of V&M Management, Inc. you are the sole shareholder, therefor income and expenses reported to you on Form K-l for 1995 through 1997 are reportable on your Form 1040." What Greg Smith failed to acknowledge was the fact that tax credits also are required to flow only through the shareholders) and the tax credits application was submitted and approved in 1997 for $11,000,000. Mourad says that the tax credit belongs to him as the sole shareholder for V&M Management, Inc. Further Mourad says that he possessed site control of the Mandela Apartments for approximately fifteen years, whereas Trustee Gray had control as a manager (not a shareholder) for only two years. Mourad says that the IRS has not given him the right to the tax credits, but instead, has burdened him only with V&M Management's liabilities.
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The Mandela Homes was sold to Beacon Properties on December 31,1997. The Chapter 11 Trustee Stephen Gray was the primary applicant in his tax credit application with Beacon as an additional applicant. How does Stephen Gray still qualify for 1998 tax credit dollars when Gray dissolved his partnership with Beacon on December 31,1997? Furthermore, the tax credits should have gone through Mourad instead of Gray, for Mourad is the sole shareholder.
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The IRS claims that the $2,088,554 capital gains came from the sale of corporate assets. Mourad disputes that claim, and says that the capital gain came only from HUD subsidies and rent from tenants. This money was kept by the Trustee and was never distributed to Mourad personally.
Mourad says that he is liable for debts exceeding $5,000,000 because he signed on all of his notes personally, and the creditors of the estate were paid only 9 cents on the dollar. Thus,there was no profit from the sale of the property. Then, Mourad received the tax returns for the years 1996 and 1997, and found that Trustee Gray had reported a profit which the Trustee kept after he sold the property. Mourad says that he should not be liable to pay income tax on money he had never received.
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If Mourad is liable to pay the taxes on the profits the Trustee kept for those years that he ran the development, then Mourad should also be entitled to all of the 'profit', as well as the tax credits, for all profits and liabilities and tax credits flow only through the shareholder.
IRS states "Fact: the 1994 form 1040 that Mr. Mourad filed shows a disallowed investment interest expense of $965,226 to be carried forward to 1995. The 1995 form 1040 that Mr. Mourad filed did not utilize any of the interest expense. Mourad says that that is not true and that the $965,226 was applied to the $2,088,554 capital gain. The IRS now asserts that Mourad owes $189,745 in taxes. Mourad disputed this claim. All losses prior to 1996 belong to Mourad personally. Mourad says that the income flowing from V&M Management for the years 1996 till the present is not his as he never received it. That income belongs to the trustee and not Mourad. Mourad says that his prior losses should not be used to offset income of the trustee. Mourad wants to keep the prior losses to offset his future income.
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Mourad says that he had only found out about his tax liability for the years 1996 and 1997 in an August 20,1998 letter from Trustee Gray's accountant stating that Mourad was responsible. Mourad says that this was deliberately done by the trustee so that Mourad would have no time to object or protest this assertion in the bankruptcy court.
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Ultimately, Mourad says that he will accept any liability bestowed upon him from V&M Management, Inc. as long as all of the profits, and especially the tax credits flow through him as well. Mourad requests that the tax credits be awarded to him to offset his personal liabilities.
Mourad has attached further documents to support his claims. Mourad reserves the right to amend this appeal.
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Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct and complete.




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