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In 1998, petitioner was convicted, pursuant to section
7206(1), of filing false tax returns and, pursuant to section
7206(2), of aiding or assisting the filing of false tax returns
relating to 1991, 1992, and 1993. The convictions were
subsequently affirmed on appeal and became final.
On December 4, 2001, petitioner, while residing in Townsend,
Georgia, filed his petition with this Court.
OPINION
Petitioner concedes that he underreported his 1991 through
1993 taxes, but contends that the liabilities were determined
after the 3-year and 6-year periods of limitations set forth in
section 6501(a) and (e), respectively. Respondent contends that
the determinations are timely because petitioner’s underpayments
are due to fraud and thus are not subject to either the 3-year or
6-year limitations period. Sec. 6501(c)(1).
Petitioner’s conviction, pursuant to section 7206(1), is a
badge of fraud and estops him from contesting that he filed false
1991, 1992, and 1993 returns and that an underpayment exists for
these years. Bradford v. Commissioner, 796 F.2d 303, 307-308
(9th Cir. 1986), affg. T.C. Memo. 1984-601; Considine v. United
States, 683 F.2d 1285, 1287 (9th Cir. 1982); Wright v.
Commissioner, 84 T.C. 636, 643-644 (1985). Respondent cannot
rely on petitioner’s conviction to sustain his burden of
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Last modified: May 25, 2011