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Issue 32. Whether Assessment and Collection of Federal Income
Taxes of Kanter, Ballard, and Lisle Are Barred by the Statute of
Limitations for Some Years
OPINION
Petitioners contend that the assessment of tax for the
Ballards' 1978, 1979, 1981, 1982, and 1984 years, the Lisles'
1984 year, and the Kanters' 1983 year is barred by the statute of
limitations under section 6501(a).
Section 6501(c)(1) provides that the tax may be assessed "at
any time" in the case of a false or fraudulent return with the
intent to evade tax. The definition of fraud for purposes of
additions to tax under section 6653(b) also applies for purposes
of determining the application of section 6501(c)(1). See
Schaffer v. Commissioner, 779 F.2d 849, 857 (2d Cir. 1985), affg.
Mandina v. Commissioner, T.C. Memo. 1982-34; Ruidoso Racing
Association v. Commissioner, 476 F.2d 502, 505 (10th Cir. 1973),
affg. T.C. Memo. 1971-194; Tomlinson v. Lefkowitz, 334 F.2d 262
(5th Cir. 1964); Estate of Temple v. Commissioner, 67 T.C. 143,
159-160 (1976); McGee v. Commissioner, 61 T.C. 249, 252, 261
(1973), affd. 519 F.2d 1121 (5th Cir. 1975).
Having found and held that part of the underpayment of tax
was due to fraud with intent to evade tax (1) as to Kanter for
the years 1978 through 1984 and 1986 through 1989, (2) as to
Ballard for 1978 through 1982, 1984, and 1987 through 1989, and
(3) as to Lisle for 1984 and 1987 through 1989, it follows that
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