- 27 -
checks deposited into the Mitsui account in 1991 that represent
income to petitioner.
As to the $3,000 cash deposit into the Mitsui account in
1989, respondent merely asserts it was fraudulent and discusses
petitioner's alleged check cashing scheme. Respondent provided
little evidence to meet the burden of proving that any amount of
this underpayment was due to fraud; therefore, we conclude that
respondent has not clearly and convincingly proven fraud with
regard to the $3,000 cash deposit into the Mitsui account in
1989.
As to the portion of the underpayment attributable to the
amounts petitioner claimed he paid Mr. Yoon as compensation in
1988 and 1989, we find that these amounts were not omitted with
the intent to evade taxes. We conclude that respondent,
therefore, has not met his burden of proving fraud by clear and
convincing evidence with regard to any of the portion of the
underpayment attributable to amounts petitioner claimed he paid
to Mr. Yoon as compensation in 1988 and 1989.
Statutory Period of Limitations--1988, 1989, and 1990
Petitioner's returns for 1988, 1989, and 1990 were filed
more than 3 years before the subject notice of deficiency was
mailed on July 7, 1995. Therefore, assessment of the
deficiencies and additions determined in the notice is barred by
the expiration of the statutory period of limitations on
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011