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barred. Respondent contends that the instant case falls within
the exception in section 6501(c)(1), which provides that tax may
be assessed at any time if a false or fraudulent return is filed
with the intent to evade tax.15 Accordingly, respondent also
determined in the deficiency notice that petitioner is liable for
(1) additions to tax for fraud under section 6653(b)(1)(A) and
(B) for 1987,16 (2) an addition to tax for fraud under section
6653(b) for 1988,17 and (3) a penalty for fraud under section
15 In the alternative, respondent contends that petitioner's
return for 1990 is subject to the 6-year period of limitations
applicable under sec. 6501(e)(1)(A) because that return omitted
substantial amounts of gross income. We need not consider
respondent's alternative argument because we find fraud for each
of the years in issue, including 1990.
16 Sec. 6653(b)(1)(A) and (B) reads as follows:
SEC. 6653(b). Fraud.--
(1) In general.--If any part of any underpayment (as
defined in subsection (c)) of tax required to be shown on a
return is due to fraud, there shall be added to the tax an
amount equal to the sum of--
(A) 75 percent of the portion of the underpayment
which is attributable to fraud, and
(B) an amount equal to 50 percent of the interest
payable under section 6601 with respect to such portion
for the period beginning on the last day prescribed by
law for payment of such underpayment (determined
without regard to any extension) and ending on the date
of the assessment of the tax or, if earlier, the date
of the payment of the tax.
17 Sec. 6653(b) reads, in pertinent part, as follows:
SEC. 6653(b). Fraud.--
(continued...)
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