Guillermo Baez Espinosa - Page 17

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          Internal Revenue at Baltimore, Maryland.  However, in refusing to           
          accept the returns the revenue agent failed to instruct the                 
          taxpayer how to properly file them; he simply stated that the               
          returns were improperly executed.  The Board sustained the                  
          Commissioner's disallowance of deductions.  The Court of Appeals            
          for the Fourth Circuit reversed.  However, the same Court of                
          Appeals later noted in Blenheim Co. v. Commissioner, 125 F.2d at            
          912, that Ardbern was distinguishable:                                      
                    A substantially different factual situation is                    
               presented in the case before us.  Here the Commissioner                
               prepared a return only after he had unsuccessfully made                
               repeated requests to the taxpayer to do so, and only                   
               after the taxpayer had flouted all of these requests. *                
               * *                                                                    
               From these cases we make the following observations.                   
          First, although section 874(a) contains no express time limit, at           
          some point there exists a terminal date, after which a taxpayer             
          can no longer claim the benefit of deductions by filing a return.           
          Blenheim Co. v. Commissioner, 42 B.T.A. 1248 (1940); Taylor Sec.,           
          Inc. v. Commissioner, 40 B.T.A. 696 (1939).  Second, while a                
          terminal date does exist, the timely filing requirements of                 
          section 6072(c) are not determinative as to whether a taxpayer is           
          entitled to the benefit of deductions.  Anglo-American Direct Tea           
          Trading Co. v. Commissioner, 38 B.T.A. 711 (1938).  Third, absent           
          some compelling equitable considerations, such as those existing            
          in Ardbern Co. v. Commissioner, supra, a taxpayer cannot claim              
          the benefit of deductions by filing a return after the                      

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