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September 20, 1990, section 7502 does not apply, and the filing
date is the date received by the IRS, September 24, 1990. Emmons
v. Commissioner, 92 T.C. 342, 346-347 (1989), affd. 898 F.2d 50
(5th Cir. 1990). If Mr. Gandy had an extension until September
24 or later, the return was timely, section 7502 would not apply
and the returns would be “filed” when delivered on September 24,
1990. Estate of Mitchell v. Commissioner, 103 T.C. 520, 522
(1994). The notices of deficiency were mailed within 3 years of
that date. Therefore, assessment is not barred for 1989.
For 1985, 1986, 1987, and 1988, respondent relies on section
6501(c)(1) and, therefore, must prove that the returns for those
years were false or fraudulent with the intent to evade tax.
Respondent also has an alternative position under section 6501(e)
for 1986, based on a 25-percent omission from gross income.
Because the question of fraud is determinative as to the
statutory period of limitations for 3 of the 5 years in issue as
well as penalties or additions to tax for all years, we first
discuss the evidence and our conclusions with respect to fraud.
Proof of fraud against either spouse prevents the running of the
period of limitations as to both spouses with respect to the
income tax deficiency on a joint return. Hicks Co. v.
Commissioner, 56 T.C. 982, 1030 (1971), affd. 470 F.2d 87 (1st
Cir. 1972). In these cases, however, the evidence for 1985,
1986, and 1987 implicates both Mr. and Mrs. Gandy.
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