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required returns. Mr. Clay, who had remained mentally alert,
assured them that he was progressing in the usual manner in
preparing the 1992 fiduciary income tax return and the allocation
statement for petitioner. During March and April of 1993,
petitioner inquired about her tax return with Mr. Clay and her
mother; she was told that the tax returns and grantor trust
allocation statements were being prepared.
Mr. Clay informed the cotrustees that sufficient estimated tax
payments had been previously made. He specifically informed Mr.
Dowdy that if he was unable to complete and file the 1992 returns,
he would prepare and file appropriate extension forms.
Mr. Clay’s health continued to decline through the spring of
1993. On July 1, 1993, he was moved to a convalescent home, where
he died 5 days later.
As a result of Mr. Clay’s deteriorating health, he neither
completed the 1992 information return for the trust nor filed the
necessary 1992 returns for petitioner, the estate, or the trust
within the prescribed period. (No extensions were requested.)
Following Mr. Clay’s death, the surviving cotrustees retained a
certified public accountant to prepare and file 1992 tax returns
for the estate, the trust, and petitioner. On February 2, 1994,
the returns (a Form 1040 for petitioner and Forms 1041 for the
estate and the trust) were filed for all three taxpayers’ 1992 tax
year.
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