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Respondent adjusted the amounts of the deficiencies in income
tax, the additions to tax, and the penalty accordingly.
On September 4, 1992, petitioners pleaded guilty and were
convicted of subscribing to a false return for 1987, in violation
of section 7206(1).
OPINION
Petitioners do not deny that they had unreported gross
receipts from the nursery during the years in issue. They also
had unreported interest income during certain of those years.
For 1986, they do not dispute that the omitted income exceeded
25 percent of the gross income stated in their return; thus, for
that year, the period of limitations is 6 years, under section
6501(e)(1)(A), and assessment is not barred.
Mr. Gandy’s return for 1989 was delivered to the IRS on
September 24, 1990. Petitioners claim that the return was
untimely filed; that pursuant to section 7502(a)(1), the return
was filed when postmarked on September 20, 1990; and, therefore,
the notice of deficiency for that year, mailed on September 21,
1993, was untimely. Section 7502(a)(1) only applies, however, if
the postmark date falls within the prescribed period or on or
before the prescribed date for the filing (including any
extension granted for such filing) of the return. Sec.
7502(a)(2). There is no evidence of an extension of time to
file. Without an extension from April 15, 1990, up to or beyond
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