- 32 -
he attached to the return for that year a disclosure statement
asserting that the return was substantially incomplete, because
at the time of filing he had not received from Mr. Feltman
information needed to prepare the return.
On audit, respondent determined that petitioners had
unreported income for 1984, 1985, and 1986 of $1,540,000,
$1,365,462, and $1,642,537, respectively. Additionally,
respondent determined that Mr. Gherman had unreported income for
1987 and 1988 of $1,529,500 and $1,645,000, respectively. The
notices of deficiency for the years in issue were mailed on July
19, 1991, and state that respondent's determinations were "based
on information available from certificates of deposit records
compiled by the bankruptcy trustee."
OPINION
Statutory Period of Limitations
Petitioners contend that assessment of the deficiency and
additions to tax that respondent determined for each of the years
ended 1984 through 1988 is barred by expiration of the periods of
limitations under section 6501. Respondent contends, however,
that the period of limitations to assess the deficiencies and
additions to tax has not expired for any year in issue.
Generally, under section 6501(a) an income tax deficiency
and additions to tax must be assessed within 3 years of the later
of (1) the date the tax return was filed or (2) the due date of
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