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current losses and loss carryforwards. He advised petitioner
that since no tax would be due, there would be no financial
disadvantage to filing a late return. Petitioner knew that he
had a duty to file timely returns, but adopted the course of
action that Leuschner recommended. Petitioners requested and
received extensions of the due date for their 1985 return until
October 15, 1986. They did not file their 1985 return until
January 11, 1988.
The returns for 1987 and 1988 were untimely filed for
similar reasons. Not all the information relevant to
petitioners' tax liabilities for these years had been collected
before the prescribed dates for filing. Leuschner informed
petitioner that in view of the "overwhelming" losses passed
through to him from the motel and restaurant businesses, he would
certainly have no tax liability for these years, and hence no
reason to be concerned about meeting the filing deadlines. Once
again petitioner was persuaded by the logic of his accountant's
advice. Petitioners sought and received extensions of the due
date for filing their return for 1987 until October 15, 1988.
They filed the return on December 5, 1989. Petitioners sought
and received extensions of the due date for filing their 1988
return until October 15, 1989. They filed the return on
December 4, 1989.
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