- 19 -
On April 16, 1990, petitioners filed an application
for an automatic extension of time to file their
individual return for 1989 and paid the estimated tax
due. On August 14, 1990, petitioners requested an
additional extension of time to file their return until
September 25, 1990. Respondent granted this extension
application on August 30, 1990. Petitioners' Form 1040,
U.S. Individual Income Tax Return, was signed on
October 15, 1990, and stamped received by respondent's
Austin, Texas, Service Center on October 22, 1990. We
note that respondent did not determine an addition to tax
for late filing with respect to petitioners' 1989 return.
On their return, petitioners valued their SWI stock for
section 83(b) purposes at $60.98 per share. Thus,
petitioners did not report any income on their 1989
return with respect to petitioner's purchase of
500 shares of SWI stock.
On April 4, 1990, petitioner purchased an additional
25 shares of SWI stock for $60.98 per share. Petitioners
thereafter made a section 83(b) election with respect to
these additional shares, in which they reported the fair
market value of the stock to be $2,600 per share. This
second section 83(b) election is not at issue in this
case.
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011