James Triplett - Page 5

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          petitioner and the revenue officer discussed the unfiled 1981 tax           
          return.  On September 13, 1985, petitioner sent his untimely                
          original 1981 income tax return dated "9/13/85", which showed no            
          tax due, to the revenue officer.  Petitioner in his cover letter            
          indicated that the return was recently prepared.                            
               When the revenue officer received petitioner's document, he            
          found one "Schedule C" business was on a marked-up 1982 Form                
          1120S, U.S. Small Business Corporation Income Tax Return, and               
          another on a marked-up 1980 Form 990, Return of Organization                
          Exempt from Income Tax.  Petitioner called and asked the revenue            
          officer if it was "all right".  The revenue officer told him that           
          the businesses should be reported on Schedules C.  Apparently, it           
          was agreed that the return would be returned to petitioner,                 
          together with the proper schedules for preparing a correct                  
          return.  The revenue officer indicated in his records that                  
          petitioner would complete the schedules and file a correct                  
          return.  Petitioner failed to do so.  The revenue officer did not           
          retain a copy of the untimely original 1981 income tax return in            
          respondent's administrative file.  Shortly thereafter,                      
          respondent's Criminal Investigation Division (C.I.D.) commenced a           
          criminal investigation of petitioner.                                       
               Respondent finished the examination of petitioner's income             
          tax for the tax year 1981 after the conclusion of the criminal              







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