Henry A. Julicher - Page 12




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          The answer lists nine affirmative defenses, most of which follow            
          along the lines of the reasons for denial provided in the denial            
          letter.  The lawsuit was eventually settled by agreement of all             
          the parties thereto.7  In the settlement, no party admitted or              
          conceded liability, and no damages were awarded.                            
               The western portion of the south building was torn down in             
          1996.  The middle and eastern portions of the south building were           
          not torn down.                                                              
               Petitioner filed his 1994 Federal income tax return (the               
          1994 return) on April 26, 1996.  The 1994 return was due to be              
          filed on October 15, 1995.  Petitioner’s accountant, Charles                
          Finder, began preparing the 1994 return sometime in 1995.  In               
          November or December 1995, petitioner gave Mr. Finder a document            
          for use in preparing the 1994 return.  This document provides               
          brief descriptions of some of the buildings on the Property, and            
          claims that two masonry buildings, exceeding 50 years of age and            
          with a combined value of approximately $154,000, were damaged by            
          the collapse in 1994.  It further claims that the value of the              
          damaged buildings after the collapse was zero.  Mr. Finder relied           
          on the document in preparing the 1994 return.  On Form 4684,                
          Casualties and Thefts, of the 1994 return, petitioner claimed a             
          casualty loss in connection with the collapse.  The Form 4684               


               7 The record does not disclose the date of the settlement.             






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