U.R. Neely - Page 10




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            properly invoked in a case, we require no additional jurisdiction                          
            to render a decision with respect to such an affirmative defense.                          
            See Genesis Oil & Gas, Ltd. v. Commissioner, supra at 564.                                 
            Rather, “When such a defense in bar is properly raised, we must                            
            pass upon the merits of the issue after receiving evidence with                            
            respect thereto”.  Badger Materials, Inc. v. Commissioner, supra                           
            at 1063.  Accordingly, we hold that where the parties are                                  
            properly before the Court in an action brought under section                               
            7436, the Court possesses jurisdiction to address issues relating                          
            to the period of limitations under section 6501 that are properly                          
            raised by the parties.                                                                     
                  In this case, our jurisdiction over the parties under                                
            section 7436 was invoked through petitioner’s timely filed                                 
            petition seeking review of respondent’s notice of determination.                           
            When petitioner pleaded as an affirmative defense in his petition                          
            that respondent’s determination as to worker classification was                            
            barred by expiration of the 3-year period of limitations under                             
            section 6501(a), we required no additional jurisdiction to                                 
            address such issue.  Furthermore, when respondent alleged in his                           
            answer that the period of limitations in this case remained open                           
            pursuant to section 6501(c) on account of petitioner’s fraudulent                          
            conduct, we required no additional jurisdiction to decide whether                          
            the circumstances described in section 6501(c) were present in                             
            this case.                                                                                 
                  We have considered respondent’s other arguments in favor of                          




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