Theodore Halper, Incompetent, Valerie Halper and Wayne Halper, Co-Plenary Guardians - Page 2

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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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