- 28 -
assessments, sec. 6501(a), unless one of the exceptions to the
period of limitations is applicable; see sec. 6501(c).
As we have found, petitioner did not submit a fraudulent
return with the intent to evade tax for any of the tax years
1988, 1989, or 1990. Therefore, the exception contained in
section 6501(c)(1) does not apply.
Respondent bears the burden of proving that the extended
6-year period of limitations specified in section 6501(e) is
applicable to petitioner's 1988, 1989, and 1990 returns.
Davenport v. Commissioner, 48 T.C. 921, 927-928 (1967); Quantz v.
Commissioner, T.C. Memo. 1990-39. Respondent did not raise the
application of section 6501(e)(1)(A) for the 1988 tax year. In
an answer to petitioner's amendment to petition, respondent
raised the application of section 6501(e)(1)(A) for the 1989 and
1990 tax years. Based on our findings regarding the cashed
checks and the yearend ledger adjustments, respondent has failed
to prove that petitioner omitted gross income in excess of 25
percent of the amount of gross income stated on his return.7
Thus, any assessments relating to the 1988, 1989, or 1990 tax
years are barred by the expiration of the period of limitations
on assessment.
7 Respondent did not raise the application of sec.
6501(e)(1)(A) in either of respondent's posttrial briefs.
Accordingly, respondent may have intended to abandon this issue.
See Callahan v. Commissioner, T.C. Memo. 1992-132.
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