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II. Periods of Limitation
Petitioner argues that respondent cannot assess the tax
liabilities petitioner reported on his tax returns due to the
expiration of the statutory periods of limitation.
In the case of a false or fraudulent return with the intent
to evade tax, the tax may be assessed at any time. See sec.
6501(c)(1). If the return is fraudulent, it deprives the
taxpayer of the bar of the statutory period of limitations for
that year. See Badaracco v. Commissioner, 464 U.S. 386, 396
(1984); Lowy v. Commissioner, 288 F.2d 517, 520 (2d Cir. 1961),
affg. T.C. Memo. 1960-32; see also Colestock v. Commissioner, 102
T.C. 380, 385 (1994).
We found that petitioner filed fraudulent income tax returns
for 1989 and 1990; therefore, the period of limitation on
assessment for each of these years remains open.
In reaching all of our holdings herein, we have considered
all arguments made by the parties, and to the extent not
mentioned above, we find them to be irrelevant or without merit.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011