Wilson D. Watson - Page 19




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          1998, 1999, 2001, and 2002, petitioner is still liable for the              
          addition to tax under * * * [section 6651(a)(1)] for failure to             
          timely file his tax returns for those years.”  In making that               
          argument, respondent apparently ignores the extensions for time             
          to file that are reflected in his own Certificate of Official               
          Record (Literal Transcript) for each year.  Taking those                    
          extensions into account, it appears that only the 1999 Form 1040            
          was submitted to the IRS after the expiration of the extension              
          period, and that that Form 1040, based upon the August 17, 2001,            
          signature date, was delinquent by more than 1 year.10                       
               Petitioner argues that his “failure to file * * * was never            
          proved under the law * * * [and that] therefore the penalty does            
          not apply.”                                                                 
                    2.  Requirement To File a Valid Return; Petitioner’s              
                    Filing Status                                                     
               Recently, in Lange v. Commissioner, T.C. Memo. 2005-176, we            
          described the requirements for making a valid return:                       


               10  That the 1999 Form 1040 was submitted more than a year             
          after the Aug. 15, 2000, extended due date (so that petitioner is           
          subject to the maximum 25-percent addition to tax under sec.                
          6651(a)(1)) is indicated by both the Aug. 17, 2001, signature               
          date and respondent’s letter to petitioner describing the 1999              
          Form 1040 as a “frivolous” return, which was dated Nov. 13, 2001.           
          Although that evidence is sufficient to support such a finding              
          and the resulting conclusion that petitioner is subject to the              
          maximum 25-percent penalty for 1999, for reasons discussed infra,           
          we are able to reach the same conclusion on the ground that                 
          petitioner’s handwritten and typed additions and his protest                
          attached to the 1999 Form 1040 justify respondent’s treating it             
          as an invalid return.                                                       






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