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extension of the period of limitations to Mr. Goldschmidt. On
March 19, 1991, Mr. Fitzgerald renewed the request, this time
directly to petitioners. On March 21, 1991, petitioners signed
and dated the Form 872, which further extended the period of
limitations to June 30, 1992. Petitioners signed a third
extension on February 26, 1992, which expired on June 30, 1993.
On June 25, 1993, respondent issued a statutory notice of
deficiency to petitioners. Petitioners filed a timely petition
with the Tax Court.
OPINION
Respondent determined additions to tax for fraud for each of
the 5 years in issue solely with respect to petitioner Mark N.
Kantor. Since we find no fraud for any of the years, we address
respondent's alternative determinations of negligence, which are
against petitioners jointly and severally by reason of their
having filed joint income tax returns for the years in issue.
Reaching these alternative determinations requires that we
address, infra p. 24, petitioners' allegation that the period of
limitations expired for each of the tax years in issue because an
invalid extension, Form 872, was executed.5
5There is a minor evidentiary issue: Petitioners submitted
at trial three letters, labeled petitioners' exhibit 29, that we
exclude from evidence as hearsay. Fed. R. Evid. 802. The
letters do not fall within the hearsay exception of "records of
regularly conducted activity". Fed. R. Evid. 803(6). First, the
letters are not entries made during the routine of a business.
They were apparently specifically written at Mark's behest to his
(continued...)
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