Theodore Halper, Incompetent, Valerie Halper and Wayne Halper, Co-Plenary Guardians - Page 1

                                 T.C. Memo. 1997-58                                   

                               UNITED STATES TAX COURT                                

                  THEODORE HALPER, INCOMPETENT, VALERIE HALPER AND                    
                 WAYNE HALPER, CO-PLENARY GUARDIANS, Petitioner v.                    
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 23378-94.             Filed February 3, 1997.               

                    P signed a power of attorney (POA) in 1988 naming B as            
               his representative.  In April 1991, P was totally                      
               incapacitated by a stroke.  B signed a Form 872 on Sept. 23,           
               1991, extending the statutory period of limitations (SPL)              
               for tax years 1985 and 1986, with a letter to R describing             
               the effects of P’s stroke.  On Jan. 28, 1992, a Florida                
               court found P legally incapacitated and named co-plenary               
               guardians, neither of which was B.  In a letter dated                  
               May 20, 1992, B advised R that P was not competent to                  
               authorize agreement to settlement, and that B thus could not           
               sign a Form 870.  However, on Aug. 27, 1992, B nevertheless            
               did sign another Form 872 for 1985 and 1986 on behalf of P.            
               On Sept. 19, 1994, a notice of deficiency for 1984, 1985,              
               and 1986 was mailed to P.                                              
                    Held: The Form 872 signed in 1992 is ineffective to               
               extend the SPL, because the POA under which B acted was                
               revoked by P’s incapacity and R had actual knowledge of the            
               incapacity.  Held, further, the SPL for 1984, 1985, and 1986           

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