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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
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."
Where respondent asserts that a taxpayer has filed a
fraudulent return with the intent to evade tax, the burden of
proof is on the respondent. Sec. 7454(a); Rule 142(b).
Respondent must satisfy his burden of proof with "clear and
convincing evidence". Rule 142(b); Fox v. Commissioner, 61 T.C.
704, 717 (1974). To establish fraud, respondent must prove, by
clear and convincing evidence, for each year and with respect to
each petitioner, that: "(1) petitioner underpaid his income tax
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