Keith R. Basham - Page 6

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          the event to Swink's bankruptcy proceeding that occurred during             
          1989.  According to petitioner, he reported no 1989 Federal                 
          income tax liability because of the extent of deductions for                
          losses he incurred during that year, and he made no claim for               
          refund on the return.                                                       
               Petitioner explained that he prepared his 1989 return with             
          the assistance of a friend.  Petitioner further explained that he           
          was unsure of whether he properly accounted for certain items on            
          the return so he attached to the return a handwritten letter that           
          identified his concerns.  Petitioner did not produce a copy of              
          his 1989 return at trial.  He explained that he discarded any               
          copies of the return that might have existed along with all other           
          documents and information relating to 1989 several years before             
          he received the notice of deficiency in 1996.                               
               We are satisfied from petitioner's testimony that he mailed            
          his 1989 Federal income tax return as claimed.  There were no               
          internal inconsistencies in his testimony, and nothing in the               
          record suggests that his description of the event is improbable.            
               Petitioner did not specify the exact date in March that he             
          mailed the return, but even if mailed on the last day of that               
          month, it should have been delivered to respondent's Memphis                
          Service Center in due course of the mails.  See Arkansas Motor              
          Coaches, Ltd. v. Commissioner, 198 F.2d 189, 190 (8th Cir. 1952).           
          That being so, we presume that petitioner's 1989 return was                 
          delivered to respondent prior to the date it was due to be filed.           
          See sec. 6072(a).                                                           

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