Sam F. and Ingrid D. Ford - Page 24

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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                         
                         (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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