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investment tax credit claimed in 1982 for the purchase of the
Corvette automobile.
OPINION
Petitioner advances two alternative arguments in response to
respondent’s determination of the deficiencies in and additions
to tax set forth in the notice of deficiency.5 First, petitioner
argues that assessment and collection of the taxes at issue are
barred by the statute of limitations under section 6501(a). In
the alternative, petitioner argues that the equitable doctrine of
laches operates to prevent assessment and collection of the taxes
at issue.
Respondent rejects petitioner’s arguments, contending
instead that the statute of limitations does not prevent
assessment and collection of the taxes at issue because
petitioner filed fraudulent returns with respect to each taxable
year at issue and, as a result, assessment and collection may be
accomplished "at any time" pursuant to section 6501(c)(1).
Respondent also maintains that petitioner’s argument with respect
to the applicability of the doctrine of laches is without merit.
5Petitioner's plea of nolo contendere to criminal tax
evasion does not estop petitioner from challenging the civil
fraud penalties alleged in this case. Hicks Co. v. Commissioner,
56 T.C. 982, 1027 (1971), affd. 470 F.2d 87 (1st Cir. 1972).
Generally, a plea of nolo contendere is inadmissible in a civil
proceeding. Fed. R. Evid. 410. A conviction based on such a
plea, however, is admissible evidence for impeachment purposes.
Hicks Co. v. Commissioner, supra.
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