-42-
otherwise been entitled to claim had it filed a timely
return. * * * [Georday Enters. v. Commissioner, supra
at 388.12]
H. Espinosa
While each of the previously discussed cases dealt with the
applicability of former section 233 to a foreign corporation,
Espinosa v. Commissioner, 107 T.C. 146 (1996), involved the
applicability of section 874(a) to a nonresident alien taxpayer.
In Espinosa, the Commissioner had mailed a letter to the taxpayer
on November 13, 1992, asking him if he had filed returns and, if
he had not, instructing him to file returns or otherwise respond.
The letter stated that the Commissioner would file substitute
returns for the taxpayer if the taxpayer did not respond by
December 1, 1992. On January 12, 1993, the taxpayer had not yet
responded, and the Commissioner wrote the taxpayer a second
request, adding that “your tax liability [will be determined]
based on the information we have” if the taxpayer did not respond
within 20 days.
On February 3, 1993, after the taxpayer had again failed to
respond, the Commissioner notified the taxpayer that the
Commissioner had filed substitute returns for the taxpayer for
1987 through 1991. On March 23, 1993, the Commissioner notified
the taxpayer that the substitute returns had been computed
12 The “terminal period prescribed in the Blenheim case”
(emphasis added) is the point where the Commissioner prepared a
substitute return for the taxpayer.
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