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Section 6501(a) provides, generally, that any tax must be
assessed within 3 years of the date on which the tax return was
filed. That general rule has an exception for fraud, which
states, in relevant part: "In the case of a false or fraudulent
return with the intent to evade tax, the tax may be assessed
* * * at any time." Sec. 6501(c)(1). Respondent has the burden
of proof with regard to the additions to tax for fraud. See sec.
7454(a); Rule 142(b). In order to carry his burden as to fraud,
respondent must prove that some part of the underpayment for each
of the years in question is due to fraud with the intent to evade
tax. See sec. 7454(a); Rule 142(b). The elements of fraud that
respondent must prove under section 6501(c)(1) are the same
elements essential for imposing a fraud penalty under section
6653(b). See Estate of Temple v. Commissioner, 67 T.C. 143, 159-
160 (1976); Mobley v. Commissioner, T.C. Memo. 1993-60, affd.
33 F.3d 1382 (11th Cir. 1994).
In view of our finding that petitioner's understatement of
tax for both 1983 and 1985 was the result of fraud, we find that
respondent has met his burden under section 6501(c)(1) for each
year in issue. Therefore, the statute of limitations does not
bar assessment and collection of tax for those years.
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011