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however, to the extent that it is based on substantial authority,
or adequately disclosed in the return. Sec. 6661(b)(2)(B).
Petitioners have failed to establish that their understatements
in tax were based on substantial authority or adequately
disclosed. Accordingly, if the recomputed deficiencies satisfy
the statutory percentage or amount, petitioners will be liable
for such additions to tax. See, e.g., Cluck v. Commissioner, 105
T.C. 324, 340 (1995).
IX. Period of Limitations
Petitioners contend that assessment and collection of the
deficiencies and additions to tax are barred by expiration of the
statutory period of limitations. We disagree. Where returns are
filed fraudulently with the intent to evade tax, the tax may be
assessed at any time. Sec. 6501(c)(1). Accordingly, we hold
that assessment and collection are not barred.
All other contentions raised by the parties are either
irrelevant or without merit.
To reflect the foregoing,
Decisions will be entered
under Rule 155.
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Last modified: May 25, 2011