Gary Friedmann - Page 20




                                       - 20 -                                         
             have used information from the returns in formulating his                
             request for information from petitioner, but there is no                 
             evidence that respondent ever treated the copies "as                     
             filed".  To the contrary, for example, respondent took the               
             step of filing a substitute return for 1990, pursuant to                 
             section 6020(b).                                                         
                  We find that petitioner has failed to establish that                
             he filed his 1989 and 1990 tax returns more than 3 years                 
             before the date the subject notice of deficiency was                     
             issued.  Thus, petitioner has failed to prove that                       
             respondent's notice of deficiency for 1989 and 1990 is                   
             untimely under section 6501(a).                                          

             II.  Returns and Allowances                                              
                  The second issue in this case, the only substantive                 
             issue presented, involves certain payments that are                      
             reported as "returns and allowances" on the Schedules C                  
             filed as part of petitioner's 1989 and 1990 tax returns.                 
             As mentioned above, petitioner's Schedules C for 1989 and                
             1990 report "returns and allowances" of $103,784 and                     
             $97,854, respectively.  Respondent allowed $53,643 of the                
             amount reported for 1989, consisting of a check drawn by                 
             petitioner on January 18, 1989, to Hackett & Co., but                    
             disallowed the rest, i.e., $50,141 in 1989 and $97,854 in                
             1990, on the ground that petitioner had not "established                 






Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011