Nellwyn A. Buck - Page 13

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          deficiency was issued or the answer was filed, because, at both             
          times, petitioner had already paid her tax liability for 1988.              
               In contrast, respondent maintains that her position was                
          substantially justified throughout the administrative and                   
          judicial proceedings.  Respondent contends that petitioner was              
          liable for income tax for 1988 and that respondent was forced to            
          issue a notice of deficiency in order to assess such liability              
          because petitioner did not file a valid return.  Respondent also            
          contends that the 6-month period between the time that the answer           
          was filed and the time that respondent agreed to settle the                 
          entire case was a reasonable period of time for respondent to               
          locate the return filed by petitioner and Mr. Buck on June 12,              
          1995, and to verify the information set forth on such return.               
          Thus, respondent maintains that her position remained                       
          substantially justified throughout the judicial proceeding.                 
               1.   The Administrative Proceeding                                     
               We begin with petitioner's contention that respondent's                
          position was not substantially justified at the time that the               
          notice of deficiency was issued.                                            
               This Court has previously set forth the essential elements             
          of a return:                                                                
               First, there must be sufficient data to calculate [a] tax              
               liability; second, the document must purport to be a return;           
               third, there must be an honest and reasonable attempt to               
               satisfy the requirements of the tax law; and fourth, the               
               taxpayer must execute the return under penalties of perjury.           
               [Beard v. Commissioner, 82 T.C. 766, 777 (1984), affd. 793             
               F.2d 139 (6th Cir. 1986).]                                             




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