- 19 - C. Remaining Badges of Fraud Petitioner points out that factually, respondent’s case rests on the understatements and the information provided to lenders. There has been no showing or allegation that petitioner (1) knowingly concealed income or assets, (2) failed to cooperate with respondent, (3)engaged in illegal activities, (4) attempted to mislead, (5) dealt in cash, (6) lacked credibility, or (7) knowingly filed false documents. On this record we conclude and hold that respondent has failed to prove by clear and convincing evidence that petitioner intended to evade taxes known to be owing by conduct intended to conceal, mislead, or otherwise prevent the collection of taxes. Accordingly, the exception for fraud did not serve to keep the assessment period for 1992, 1993, or 1994 open under section 6501(c). II. Respondent’s Alternative Argument Concerning Section 6501(c)(1) Respondent also argues that, for purposes of indefinitely extending the period for assessment under section 6501(c)(1), petitioner’s state of mind is irrelevant. Section 6501(c)(1) provides for an exception to the 3-year period for assessment of section 6501(a), as follows: False Return. In the case of a false or fraudulent return with the intent to evade tax, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011