Guillermo Baez Espinosa - Page 9

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                    (b) Filing deadline for return--(1) General rule.                 
               * * *  If no return for the taxable year immediately                   
               preceding the current taxable year has been filed, the                 
               required return for the current taxable year (other                    
               than the first taxable year of the nonresident alien                   
               individual for which a return is required to be filed)                 
               must have been filed no later than the earlier of the                  
               date which is 16 months after the due date, as set                     
               forth in section 6072, for filing the return for the                   
               current taxable year or the date the Internal Revenue                  
               Service mails a notice to the nonresident alien                        
               individual advising the nonresident alien individual                   
               that the current year return has not been filed and                    
               that no deductions or credits * * * may be claimed by                  
               the nonresident alien individual.                                      
               On March 23, 1993, respondent sent petitioner a so-called              
          doomsday letter3 notifying petitioner that returns had been filed           
          by respondent, and that deductions and certain credits could no             
          longer be claimed.   Petitioner's returns were not submitted                
          until October 7, 1993.  Accordingly, petitioner does not satisfy            
          the conditions of the regulation for either the 1990 or 1991                
          taxable year.  Petitioner, however, contends that this regulation           
          is invalid for various reasons.  We will address this argument              
               Prior to 1990, the regulations under section 874 only                  
          addressed the problem by implication.  Section 1.874-1(c), Income           

          3   Wright H. Schickli coined the term "doomsday letter" to                 
          refer to the Internal Revenue Service notice described in sec.              
          1.874-1(b), Income Tax Regs., that cuts off or restricts a                  
          nonresident alien individual's ability to claim deductions.                 
          Schickli, "New House Rules for Foreign Taxpayers that Play the              
          U.S. Audit Lottery", 43 Tax Lawyer 915, 953 (1990).                         

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