Robert C. Austin - Page 7

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          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.                                                           

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