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Memo. 1995-596. See Bowlin v. Commissioner, 31 T.C. 188 (1958),
affd. per curiam 273 F.2d 610 (6th Cir. 1960).
Statute of Limitations
Petitioner argues that respondent is time barred from
asserting liability against petitioner as a transferee.
A transferee’s liability, at law or in equity, for Federal
income tax generally must be assessed and collected in the same
manner as the transferor’s liability. See sec. 6901(a)(1)(A)(i).
In the case of the liability of an initial transferee, however,
the statute of limitations extends 1 year after the limitations
period for assessing tax against the transferor. See sec.
6901(c). Petitioner concedes that he is an initial transferee of
ACT.
As a general rule, the limitations period for assessing
taxes against the transferor is 3 years from the date the return
is filed. See sec. 6501(a). In the case of a false or
fraudulent return with the intent to evade tax, however, the
general rule is inapplicable, and the IRS may assess or collect
the tax anytime. See sec. 6501(c)(1); DiLeo v. Commissioner, 96
T.C. 858, 880 (1991), affd. 959 F.2d 16 (2d Cir. 1992).
This Court previously has determined that ACT is liable for
the addition to tax for fraud with respect to taxable year 1988.
See Association Cable TV, Inc. v. Commissioner, supra. This
holding is conclusive that at least part of the deficiency was
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