Question:
• Did Amy have any obligations to file any tax returns of any sort for any year?
• If yes, what might the consequences of the failures to file be?
• Finally, is there anything Amy could, or should do, to reduce the impact of any failures?

ISSUES
1. Whether a non-liquidating distribution of inventory by an LLC to its member(s), would result in the recognition of gain or loss?
2. What are the tax consequences to the distributee-partner(s) and the done of an inter- vivos gift of previously distributed inventory?