- 10 -10
from AJF's cash receipts journal. Expenses were determined using
check registers and cash-paid-out journals. AJF's books and
records did not disclose amounts pertaining to the fuel
reimbursement checks from the J.C. Penney distribution centers,
nor did they disclose the Custom Decorating checks for delivery
services.
In general, after the returns were prepared for clients
including petitioners, Witkowski's office would contact the
client, who would normally pick them up. If the client had not
picked them up after a reasonable length of time, Witkowski's
office would again contact the client.
Witkowski signed AJF's corporate returns for 1988, 1989, and
1990 on June 15, 1989, June 1, 1990, and July 8, 1991,
respectively. For some unexplained reason, the 1988 and 1989
corporate returns reflect that Ferrentino signed them on May 6,
1991. He signed the 1990 corporate return on July 12, 1991.
OPINION
I. Fraudulent Return Exception
Since the 3-year period of limitations on assessment under
section 6501(a) has expired with respect to the taxable years at
issue, respondent is barred from assessing the deficiencies
unless an exception to section 6501(a) applies.
However, section 6501(c) provides exceptions to the general rule.
The pertinent exception in this case is found in section
6501(c)(1) which provides that "In the case of a false or
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