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Statute of Limitations
The Commissioner generally is required to assess tax within
3 years of the date the return is filed. Sec. 6501(a). There is
no limitation period to assess tax if the Commissioner proves
fraud. Sec. 6501(c)(1).
In light of our holding that respondent has proved fraud
under section 6653(b) for petitioner, we hold that assessment and
collection of the deficiencies and additions to tax for
substantial understatement determined against petitioners, and of
the additions to tax for fraud determined against petitioner, are
not barred by the statute of limitations. Accordingly, we need
not reach respondent's alternative argument under section 6501(e)
for 1985.
To reflect the foregoing and the concessions by the parties,
Decision will be entered
under Rule 155.
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