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Henry about the character of the payments totaling $1,623,203
that he received from du Pont during 1994. Mr. Gargiulo un-
derstood from Mr. Henry that those payments were made because du
Pont ruined Mr. Henry's character and he thereby suffered a
personal injury. Having been so informed by Mr. Henry, Mr.
Gargiulo examined the Master Tax Guide, the CCH tax reporter, and
the Service Publication 17. Based on Mr. Gargiulo's examination
of those materials and his understanding from Mr. Henry that the
payments totaling $1,623,203 that du Pont paid Mr. Henry during
1994 were made because Mr. Henry's character was ruined and he
thereby suffered a personal injury, Mr. Gargiulo concluded that
Mr. Henry was not required to, and Mr. Henry did not, report
those payments as income in his tax return for that year.
Neither Mr. Gargiulo nor Mr. Henry retained a tax attorney or a
certified public accountant, or consulted the Service, regarding
the tax treatment of the $1,623,203 in payments that Mr. Henry
received from du Pont during 1994.
Filing of Petitioner's 1994 Tax Return
The date, as extended, on which petitioner was required to
file his 1994 tax return was October 15, 1995, which was a
Sunday. Consequently, the due date of that tax return was the
next business day, which was Monday, October 16, 1995. The
envelope in which Mr. Henry's 1994 tax return was mailed to the
Service was postmarked on October 17, 1995.
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