Harvey M. Pert, Transferee - Page 14

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          transferee liability for the year 1986.  Petitioner points out              
          that the closing agreement provided that Kathleen Pert was not              
          liable for the civil fraud additions to tax assessed against the            
          Estate of Timothy Riffe, and contends that respondent may not now           
          assess transferee liabilities against Kathleen Pert or against              
          petitioner based upon those civil fraud additions.  We disagree.            
              The income tax due from Kathleen Pert for 1986, may be                 
          assessed at any time because it was agreed in the closing                   
          agreement for the Estate of Timothy Riffe that the joint income             
          tax return filed for that year was false or fraudulent.  Sec.               
          6501(c)(1).  Where a joint fraudulent return is filed, the                  
          Commissioner may assess a tax at any time against either spouse,            
          even if only one of the spouses committed fraud in filing the               
          return.  Sec. 6501(c)(1); Benjamin v. Commissioner, 66 T.C. 1084,           
          1100-1101 (1976), affd. 592 F.2d 1259 (5th Cir. 1979); Vannaman             
          v. Commissioner, 54 T.C. 1011, 1018 (1970); Estate of Sawcza v.             
          Commissioner, T.C. Memo. 1993-210, affd. without published                  
          opinion 46 F.3d 70 (11th Cir. 1995).                                        
               If the transferor's tax may be assessed at any time because            
          of fraud, the period of limitations against a transferee of the             
          transferor remains indefinitely open.  Bartmer Automatic Self               
          Serv. Laundry, Inc. v. Commissioner, 35 T.C. 317, 322 (1960);               
          Forehand v. Commissioner, T.C. Memo. 1993-618.  Thus, we hold               
          that the limitations period for assessing transferee liability              
          against petitioner for the tax year 1986 has not expired.                   



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