Guillermo Baez Espinosa - Page 16

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               the generally accepted rule concerning the number of                   
               returns which may be filed.                                            
                    *    *         *    *         *    *         *                    
                    Without prescribing an absolute and rigid rule                    
               that whenever the Commissioner files a return for a                    
               foreign corporation the taxpayer is completely and                     
               automatically denied the benefit of deductions or                      
               credits, we yet hold that the facts of the instant case                
               justify a disallowance of deductions which petitioner                  
               might otherwise have been entitled to claim, had it                    
               filed a timely return in compliance with the statutory                 
               requirement.  [Blenheim Co. v. Commissioner, 125 F.2d                  
               906, 910 (4th Cir. 1942), affg. 42 B.T.A. 1248 (1942).]                
               In Georday Enterprises v. Commissioner, 126 F.2d 384 (4th              
          Cir. 1942), affg. a Memorandum Opinion of the Board of Tax                  
          Appeals dated Sept. 30, 1940, a companion case to Blenheim Co. v.           
          Commissioner, supra, the Board denied deductions under section              
          233 of the Revenue Acts of 1928 and 1932.  The Court of Appeals             
          for the Fourth Circuit affirmed on the basis of Blenheim noting             
          that the case for the disallowance was even stronger because the            
          taxpayer did not attempt to file a return until after a petition            
          had been filed with the Board.                                              
               One other case deserves some discussion.  In Ardbern Co. v.            
          Commissioner, 41 B.T.A. 910 (1940), modified and remanded 120               
          F.2d 424 (4th Cir. 1941), the taxpayer, a foreign corporation,              
          proffered income tax returns to a revenue agent prior to the date           
          the Commissioner prepared returns and issued a notice of                    
          deficiency.  The revenue agent refused to accept the returns                
          because they were required to be filed with the Collector of                

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