Linda Ruth Palmer - Page 10




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               SEC. 6501(c).  Exceptions.--                                           
                    (1) False Return.--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.                                                           

          As discussed in detail below, we have found that the facts deemed           
          admitted under Rule 37(c) establish that petitioner's income tax            
          returns for 1982, 1983, and 1984, were filed fraudulently with              
          the intent to evade tax.  Consequently, the three-year period of            
          limitations in section 6501(a) does not apply.                              
          Deficiencies and Additions to Tax Under Sections 6654 and 6661              
               As to the deficiencies determined by respondent and the                
          additions to tax under sections 6654 and 6661, respondent's                 
          determinations are presumptively correct, and petitioner bears              
          the burden of proving otherwise.  See Rule 142(a).  Based on the            
          facts deemed admitted, petitioner has failed to meet her burden             
          of proof.  See Marshall v. Commissioner, supra at 272.                      
          Accordingly, we shall grant summary judgment for respondent with            
          respect to such deficiencies and additions.                                 
          Additions to Tax Under Section 6653(b)                                      
               Respondent determined that petitioner is liable for the                
          additions to tax for fraud pursuant to section 6653(b), which               
          requires respondent to establish, by clear and convincing                   
          evidence, that there is an underpayment of tax and that some                
          portion of that underpayment is due to fraud.  See sec. 7454(a);            




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