Melvin J. Laney and Carolyn A. Laney - Page 43

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            imposed against them.  Funk v. Commissioner, 687 F.2d 264, 266                            
            (8th Cir. 1982), affg T.C. Memo. 1981-506; Ehrlich v.                                     
            Commissioner, 31 T.C. 536, 540 (1958).                                                    
                  Respondent concedes that petitioners timely filed their 1986                        
            and 1988 tax returns.  See supra note 2.                                                  
                  Petitioners received an automatic extension of time, until                          
            August 15, 1988, to file their 1987 tax return.  They timely                              
            filed a request for a further extension, until May 5, 1989; they                          
            were granted an extension only until October 17, 1988.  They                              
            filed their 1987 tax return on May 11, 1989, almost 7 months                              
            late.                                                                                     
                  At trial and on brief petitioners contend that they filed a                         
            1987 “first return”, or “initial return”, on August 15, 1988,                             
            together with their request for a further extension.                                      
            Respondent’s records show both extensions, but do not show any                            
            1987 tax return for petitioners filed before May 11, 1989.  We                            
            note that petitioners’ August 15, 1988, request for further                               
            extension states the following as the last sentence of their                              
            explanation of why they need the further extension:  “Tax Payer                           
            will be due a refund of $953.08 when the Federal return is filed                          
            and owes no tax.”  (Emphasis added.)  This language strongly                              
            suggests that the request for further extension was not                                   
            accompanied by any tax return for 1987.                                                   







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