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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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