Guillermo Baez Espinosa - Page 21

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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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