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G. Statute of Limitations
Petitioners contend that the time to assess tax for
petitioners for 1963 to 1969 has expired.5 We disagree as to
1964 to 1969 and agree as to 1963.
The Commissioner is generally required to assess tax within
3 years of the date the return is filed or due, whichever is
later. Sec. 6501(a). There is no limit on the time to assess
tax if the Commissioner proves fraud. Sec. 6501(c)(1). We have
found that petitioner is liable for fraud for each of the years
1964 to 1970. Thus, respondent may assess tax for those years.
Sec. 6501(c)(1). However, the time to assess tax for 1963 has
expired because respondent has not proven fraud for that year.
H. Whether Ruth Levitt Is an Innocent Spouse
1. Background
Petitioners contend that Ruth Levitt is an innocent spouse
under section 6013(e).
Spouses who file joint tax returns are jointly and severally
liable for tax. Sec. 6013(d)(3). Petitioners argue that Ruth
Levitt is not liable for the deficiencies and the addition to tax
for substantial understatement of income tax because she is an
innocent spouse under section 6013(e). To qualify as an innocent
spouse for any of the years in issue, petitioners must prove
that: (a) Ruth Levitt filed a joint return for the year; (b)
5 Petitioners concede that respondent may assess tax for
1970 under sec. 6501(c)(4).
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