Elgin E. Flagg - Page 5

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          2 years.  Petitioner argues that 100 percent of the overpayments            
          were attributable to worthless debts or worthless securities,               
          which makes them refundable in full under the 7-year rule of                
          section 6511(d)(1).  Petitioner alleges in his brief that the               
          overpayments were attributable to debts and securities which were           
          worthless, and he attached certain documents to his brief which             
          he claims support his allegation.  Petitioner argues that each              
          "return" prepared by respondent under section 6020(b) was a                 
          return for purposes of section 6511, and he contends in his brief           
          that respondent prepared the returns on August 4, 1994.                     
          Petitioner contends in his brief that respondent offered him a              
          settlement under which he would have been allowed the 1986                  
          overpayment in full, and he argues that the respondent's offer              
          proves his right to the 1986 refund.                                        
               We hold for respondent.  Petitioner must prove that the                
          disputed amounts were attributable to worthless debts or                    
          worthless securities, Welch v. Helvering, 290 U.S. 111, 115                 
          (1933); see also Borchers v. Commissioner, 95 T.C. 82, 91 (1990)            
          (fact that case submitted to the Court fully stipulated under               
          Rule 122 does not change or otherwise lessen taxpayer's burden),            
          affd. 943 F.2d 22 (8th Cir. 1991); Drum v. Commissioner, T.C.               
          Memo. 1994-433 (same), affd. without published opinion 61 F.3d              
          910 (9th Cir. 1995), and petitioner must demonstrate that his               
          claim for refund was timely, Michelson v. Commissioner, T.C.                
          Memo. 1997-39.  Although section 6512(b)(1) bestows jurisdiction            




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