J. Randall and Jane B. Groves - Page 2




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               After concessions, the issues for decision are:                         
               1. Whether petitioner1 is liable for the addition to tax                
          for fraud under section 6653(b) for 1988 or the fraud penalty                
          under section 6663 for 1989.  We hold that he is not.                        
               2. Whether the statute of limitations bars assessment of                
          tax for 1988 and 1989.  We hold that it does.                                
                                   FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.                
          A.   Petitioners                                                             
               Petitioners lived in Matthews, North Carolina, when they                
          filed their petition.                                                        
               1.   Petitioner's Law Practice                                          
               Petitioner is a tax attorney who began practicing law in                
          1967.  Petitioner was a trial attorney in the office of the Chief            
          Counsel for the Internal Revenue Service (IRS) from 1967 to 1971.            
          He began to practice law in Charlotte, North Carolina, in 1971.              
          Petitioner tried 13 regular cases and numerous small cases in the            
          Tax Court from 1968 to 1976.                                                 
               2.   Petitioner’s Activities in 1988 and 1989                           
               Petitioner was a partner in the law firm Weinstein &                    
          Sturgess in 1988 and 1989.  In those years, petitioner                       

               1 References to petitioner are to J. Randall Groves.                    
          Section references are to the Internal Revenue Code in effect                
          during the years at issue.  Unless otherwise indicated, Rule                 
          references are to the Tax Court Rules of Practice and Procedure.             






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