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for assessment would have expired prior to respondent's issuance
of the November 20, 1991, notice of deficiency. Sec. 6501(a).
With respect to the 1983 taxable year, respondent has proven
that the return was fraudulent within the meaning of section
6653(b), and, accordingly, section 6501(c)(1) would apply. That
section provides that tax may be assessed at any time in the case
of a fraudulent return filed with intent to evade tax.
Accordingly, the period for assessment had not expired with
respect to the 1983 taxable year at the time respondent issued
the notice of deficiency to petitioners.
With respect to 1980 through 1982, we have found that the
addition to tax for fraud is not applicable. The 1980 through
1982 taxable years are in issue solely due to the carryback of
credits from the 1983 taxable year. Petitioners have conceded
that they are not entitled to the disallowed credits, and but for
the expiration of the assessment period, respondent's
determination would be sustained.
Section 6501(j), however, provides that deficiencies
attributable to a credit carryback may be assessed at any time
before the expiration of the period for assessing a deficiency
for the taxable year from which the credit emanates.
Accordingly, we find that the period for assessment had not
expired for the 1980 through 1982 taxable years at the time
respondent issued the notice of deficiency to petitioners.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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