- 5 -
3-year period of limitations under section 6501(a)7 does not
apply in this case. Respondent alleges that petitioner’s failure
to pay employment taxes with respect to amounts paid to the
workers during 1992 constituted (1) a willful attempt by
petitioner to defeat or evade employment taxes and (2) fraud with
an intent to evade tax. Accordingly, respondent contends that
the period of limitations in this case remains open pursuant to
either section 6501(c)(1) or section 6501(c)(2).
Prior to trial, the parties entered into a stipulation of
facts in which petitioner stipulated that the workers were
employees of the company during 1992 and that petitioner does not
qualify for relief under section 530 of the Revenue Act of 1978,
Pub. L. 95-600, 92 Stat. 2763, 2855.8 The matter for decision at
7 Sec. 6501(a) provides that, with respect to any tax
imposed by the Internal Revenue Code, “no proceeding in court
without assessment for the collection of such tax shall be begun”
following the expiration of the applicable period of limitations.
See also sec. 301.6501(a)-1(b), Proced. & Admin. Regs. As a
general rule, the period of limitations expires after 3 years
from the date on which the relevant tax return is filed. See
sec. 6501(a). Various exceptions to the 3-year period are found
in sec. 6501, including an unlimited limitations period under
sec. 6501(c)(1) for cases in which the filed return was false or
fraudulent with an intent to evade tax. See also sec.
301.6501(c)-1(a), Proced. & Admin. Regs.
8 That petitioner now concedes the merits of respondent’s
determination does not deprive the Court of jurisdiction. As we
stated in the income tax context in Hannan v. Commissioner, 52
T.C. 787, 791 (1969): “it is not the existence of a deficiency
but the Commissioner’s determination of a deficiency that
provides a predicate for Tax Court jurisdiction. * * * Indeed,
were this not true, then the absurd result would be that in every
case in which this Court determined that no deficiency existed,
(continued...)
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