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proving that, during 1986, petitioners received $2.8 million in
unreported income that respondent had not included in the
statutory notice of deficiency.
Our decision to grant respondent's motion is further
informed by section 6212(c). That provision authorizes the
Commissioner to issue an additional notice of deficiency while a
case is before us "in the case of fraud". We have given that
provision full effect, where, as in the instant case, respondent
has earlier sought to file an amended pleading asserting fraud.5
Burke v. Commissioner, 105 T.C. 41 (1995). Accordingly, even if
we should deny respondent's motion to amend his answer and assert
an increased deficiency, including fraud, it appears that section
6212(c) would permit respondent to issue a new statutory notice
of deficiency determining the same matters that respondent
asserts in the proposed amendment to amended answer. We see no
reason to require the parties to leap over these additional
procedural hurdles. See Arthur A. Everts Co. v. Commissioner, a
5Sec. 6212(c)(1), in pertinent part, provides as follows:
SEC. 6212(c). Further Deficiency Letters
Restricted.--
(1) General Rule.--If the Secretary has mailed to
the taxpayer a notice of deficiency as provided in
subsection (a), and the taxpayer files a petition with
the Tax Court within the time prescribed in section
6213(a), the Secretary shall have no right to determine
any additional deficiency of income tax for the same
taxable year, * * * except in the case of fraud, * * *.
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