U.R. Neely - Page 1
















                                   116 T.C. No. 8                                     


                               UNITED STATES TAX COURT                                


                             U.R. NEELY, Petitioner v.                                
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 14936-98.                Filed February 13, 2001.           

                    P contends that R is barred from assessing                        
               additional employment taxes because the notice of                      
               determination concerning worker classification was                     
               issued after the expiration of the general 3-year                      
               period of limitations under sec. 6501(a), I.R.C.  R                    
               contends that the period of limitations on assessment                  
               is indefinitely extended pursuant to sec. 6501(c)(1),                  
               I.R.C., by reason of P’s fraud in the filing of various                
               employment tax returns.                                                
                    Held:  The elements of fraud in the employment tax                
               context are the same as those in the income, estate,                   
               and gift tax contexts.                                                 
                    Held, further, P did not commit fraud for purposes                
               of sec. 6501(c)(1), I.R.C.  Accordingly, R is barred by                
               the statute of limitations from assessing additional                   
               employment taxes for the taxable periods in issue.                     
                                                                                     







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