No, this is not a reprise of the 1886 hit song by Alfred Cellier and B. C. Stephenson, which featured in the long-running London hit musical Dorothy, subject of a celebrated critical pan from George Bernard Shaw.

Rather, this is a lesson that would have profited the late-filers, whose alchemistic manoeuvres, trying to turn ordinary income into capital gains, founder in Cordell D. Pool, et al, 2014 T. C. Memo. 3, filed 1/8/14.

Cordell and the et als bought some land in an LLC, created a corporation which they controlled, sold the land to the corporation on the installment plan, used the corporation to subdivide and develop the lots, and sell them. Of course, the sales price of the land from LLC to corporation was heavily marked up.

As usual in the dealership-vs-investment scenarios, it’s all about the evidence, and Cordell and the et als aren’t talking much, claiming the papers tell it all.

Not to Judge Goeke. He finds for IRS on burden of proof.

Now as this is purely a fact-driven case, I’m not dwelling on the evidence. Nor need I dwell upon the proposition that one can divide one’s holdings among controlled entities in order to minimize the liabilities of one from spilling over onto the others. Nor that one can acquire property with one purpose in mind, but then change one’s mind and devote the property (by some affirmative act) to another; acquisition intent is not an albatross around one’s neck.

But as Cordell and the et als flunk all the tests, and as I nevertheless found this opinion worthy of note, here’s the point (and I can hear my readers say “At last!”).

Cordell and the et als all filed their 1040s late. Cordell and one of the et als were seven and two days late, respectively. The remaining et al (MFJ filers), although they had filed the extension, didn’t file for eight months after that.

Think that could have awakened somebody? If you’re trying one, don’t stand out. If you’re going to be a wiseguy, be wise in time.