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to IRA, Weaver did not perform any services for IRA or KWJ and
the payment of the 30-percent amounts to Weaver did not
constitute compensation for services rendered. The amounts thus
paid are not deductible by KWJ and/or IRA. The full amounts paid
by Hyatt to KWJ constitute gross income to IRA. However, the
Court is satisfied that the 30-percent payments by IRA to Weaver
represented part of the purchase price by IRA for the KWJ stock
and, to that extent, the payments to Weaver would add to and
increase IRA's basis in the stock of KWJ Corporation. Therefore,
respondent is sustained on this issue.
Issue 30. Whether the Assessment and Collection of the
Deficiency and Additions to Tax as to IRA for 1980 Are Barred by
the Statute of Limitations
FINDINGS OF FACT
IRA's 1980 Federal income tax return was due to be filed on
March 15, 1981. Pursuant to two requests for extensions of time
for filing, which were granted, the due date for IRA's 1980
return was extended to September 15, 1981. However, IRA did not
file its return on or before the extended date. IRA filed its
1980 return by mail in an envelope bearing a U.S. Postal Service
postmark of November 20, 1981, properly addressed to the Internal
Revenue Service. The letter was sent by ordinary mail and was
neither certified nor registered. The return was received by the
IRS Kansas City Service Center and was date stamped November 24,
1981. There is an additional date stamp on the return indicating
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