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obligations. Accordingly, we conclude that at least a portion of
the underpayment for each year is due to fraud. Because
petitioner has failed to submit credible evidence showing that
some specific part is not due to fraud, we hold that petitioner
is liable for the section 6663 civil fraud penalties. See sec.
6663(b).
IV. Statute of Limitations
As a general rule, section 6501 provides that any tax must
be assessed within 3 years of the date on which the pertinent tax
return was filed. However, an exception exists in the case of a
“false or fraudulent return”, under which exception tax may be
assessed “at any time.” Sec. 6501(c)(1). Respondent bears the
burden of proving fraud in this context. Sec. 7454(a); Rule
142(b). Because respondent has done so here for the reasons
explained above, assessment of petitioner’s 1990 and 1991 tax
liabilities is not barred by the statute of limitations.
To reflect concessions made and the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011