- 24 - 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, * * *.Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011