William Henry Sundel - Page 31

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             evade tax".  See sec. 6501(c)(1); Lowy v. Commissioner,                  
             288 F.2d 517, 520 (2d Cir. 1961), affg. T.C. Memo.                       
             1960-32; Colestock v. Commissioner, 102 T.C. 380, 385                    
             (1994).  Section 6501(c) provides as follows in this                     
             regard:                                                                  

                       (1) False Return.--In the case of a false or                   
                  fraudulent return with the intent to evade tax,                     
                  the tax may be assessed, or a proceeding in court                   
                  for collection of such tax may be begun without                     
                  assessment, at any time.                                            

                  Because we have sustained respondent's determination                
             that petitioner's underpayment of tax for 1983 was                       
             attributable to fraud, the 3-year period of limitations                  
             is inapplicable to that return.  See Lowy v. Commissioner,               
             supra at 520; Colestock v. Commissioner, supra at 285;                   
             Beauchamp v. Commissioner, T.C. Memo. 1997-393.  Pursuant                
             to section 6501(c)(1), a tax deficiency with respect to                  
             petitioner's 1983 return may be assessed at any time.                    
             Accordingly, we reject petitioner's argument that the                    
             period of limitations expired prior to the time respondent               
             issued the subject notice of deficiency.                                 












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