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We hold in the circumstances of this case that the
submission of returns by petitioner after substitute returns had
been prepared by respondent, and after petitioner had been
notified that no deductions are allowable but prior to the
issuance of the notice of deficiency, is insufficient to avoid
the sanction of section 874(a). We recognize that the
application of section 874(a) in this case may appear draconian.
That result, however, flows from the nature of the statute. As
we have suggested, were we to hold otherwise we essentially would
reward petitioner for ignoring the repeated requests that he
comply with the filing requirements of the Code. By the same
token we, as did the Court of Appeals for the Fourth Circuit in
Blenheim Co. v. Commissioner, 125 F.2d 906 (4th Cir. 1942), affg.
42 B.T.A. 1248 (1940), decline at this time to adopt an absolute
and rigid rule for all cases.
Petitioner also contends that respondent acted unreasonably
in failing to grant a waiver of the filing deadlines set forth in
section 1.874-1(b)(1), Income Tax Regs., as permitted by section
1.874-1(b)(2), Income Tax Regs. Section 1.874-1(b)(2), Income
Tax Regs., provides that the deadlines may be waived "in rare and
unusual circumstances if good cause for such waiver, based on the
facts and circumstances, is established by the nonresident alien
individual." As a preliminary matter, however, petitioner must
establish that he requested a waiver. Cf. Sisson v.
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