- 7 -
returns.1 The mother's condition continued to worsen, and she
died in August of 1989. Petitioner's father died approximately a
year after his mother's death, in August of 1990.
As of April 15, 1989, petitioner had not filed a Federal
income tax return since his return filed for the taxable year
1983. Petitioner was aware that a Federal income tax return is
required to be filed for each year by April 15 of the following
year. On April 15, 1989, petitioner prepared and mailed Form
4868, Application for Automatic Extension of Time to File U.S.
Individual Income Tax Return (Form 4868), for the taxable year
1988. Petitioner entered the following figures on the Form 4868:
Total tax liability $22,345.00
Federal income tax withheld 2,555.04
BALANCE DUE 19,789.96
Petitioner enclosed with the 1988 Form 4868 a check in the amount
of $19,789.96 (the remittance) to the Internal Revenue Service
(IRS). Petitioner obtained $15,000 of the funds used for the
remittance from his account at ROLICH. The memo line on the
check was blank. In petitioner's check register, he noted that
the check was to IRS for "88 taxes". Petitioner had initially
written the amount of the remittance in the check register as
$19,600, but he crossed out that figure and then wrote in
$19,789.96. He made the change because he thought the round
1 However, the father remained active in managing his and
petitioner's investments. The leveraged buy out of UNAKA
occurred in 1987, and the loan to buy securities for petitioner
occurred in 1988.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011