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872 (Consent To Extend Time To Assess Tax) for 1976 and 1977
which extended the time to assess tax to December 31, 1986.
Petitioners did not consent to extend the time to assess tax for
1975. Respondent mailed a notice of deficiency for 1975, 1976,
and 1977 on December 23, 1986. That date was more than 6 years
after petitioners filed their 1975 return.
Generally, the Commissioner must assess tax within 3 years
after the due date of a timely filed return. Sec. 6501(a).
Respondent bears the burden of proving that an exception to the
3-year limit on the time to assess tax applies if, as here, the
notice of deficiency was mailed more than 3 years after the
filing date. Farmers Feed Co. v. Commissioner, 10 B.T.A. 1069
(1928).
2. Statute of Limitations for 1975
Respondent contends that no limit on the time to assess tax
applies for 1975 because respondent proved fraud. Sec.
6501(c)(1). Respondent does not argue that any exception other
than fraud under section 6501(c)(1) applies to 1975. We have
concluded that respondent did not prove fraud for 1975, 1976, or
1977. See par. D, above. Thus, assessment of the deficiency and
addition to tax for 1975 is barred by the statute of limitations.
a. Statute of Limitations for 1976 and 1977
Respondent contends that assessment and collection for 1976
and 1977 are timely because petitioners omitted a substantial
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