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had expired when the notice was mailed, unless the
underpayments of tax for those years were due to fraud.
Michael B. Axman, for petitioner.
Ladd C. Brown, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
PARR, Judge: This case is before us on petitioner's motion
for partial summary judgment. The case involves tax years 1984,
1985, and 1986. One of the issues is whether petitioner is
liable for the addition to tax for fraud for each of those years.
The parties agree that, absent fraud, the period of limitations
for 1984 has expired. The parties also agree that petitioner's
Federal income tax returns for the taxable years 1985 and 1986
were filed on July 25, 1986, and June 12, 1987, respectively, and
that, without a valid chain of extensions, the periods of
limitations would have expired July 25, 1989, and June 12, 1990,
respectively, unless the underpayments of tax for those years
were due to fraud.
The specific issue presented is whether the Forms 872
(Consent to Extend the Time to Assess Tax), executed by
petitioner's purported representative on September 23, 1991, and
August 27, 1992, were effective to extend the periods of
limitations. That issue turns on whether respondent knew or had
reason to know that petitioner was, in fact, incompetent and that
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