Lesely J. and Aljournia Moore - Page 17




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          petitioners failed to give Jenkins accurate information for the             
          preparation of their Federal income tax returns.                            
               On the basis of all the evidence, we conclude and hold that            
          respondent has met his burden of proving that some portion of               
          petitioners’ underpayment for each year in issue is attributable            
          to fraud on the part of both Lesely and Aljournia.                          
          4.   Statute of Limitations                                                 
               At trial, petitioners argued that the period of limitations            
          has run for the years at issue.  Petitioners’ argument is                   
          without merit.                                                              
               Generally the amount of any tax must be assessed within 3              
          years after a return is filed.  See sec. 6501(a).  If the                   
          Commissioner proves that the taxpayer’s return was false or                 
          fraudulent with the intent to evade tax, however, tax may be                
          assessed “at any time”.  Sec. 6501(c)(1).  We have held that                
          respondent proved by clear and convincing evidence that                     
          petitioners’ Federal income tax returns for taxable years 1987              
          through 1990 were filed with the fraudulent intent to evade                 
          taxes.  Accordingly, respondent is not time barred from                     
          assessing tax liability against petitioners for any of the                  
          subject years.                                                              
               To reflect the foregoing and respondent’s concessions,                 

                                              Decision will be entered                
                                         under Rule 155.                              





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