- 4 - Instead, petitioner contends that he does not owe any Federal tax liabilities because he timely filed the tax returns at issue. Discussion Section 6501 Section 6501(a) sets forth limitations on assessment and provides as a general rule that Federal income taxes must be assessed within 3 years after the filing of the return. However, if the taxpayer fails to file a return, the statute of limitation is never set in operation, and the IRS may assess the tax at any time. Sec. 6501(c)(3); sec. 301.6501(c)-1(c), Proced. & Admin. Regs. If the Court finds that petitioner timely filed the returns for 1995, 1996, and 1997, respondent’s assessments are time- barred under section 6501(a). If, however, the Court finds that petitioner did not file the returns, the assessments are valid because respondent may assess the tax at any time. In the latter case, the Court will also address whether petitioner is liable for additions to tax under sections 6651(a)(1) and 6654. The Commissioner’s determinations are presumed correct, and generally taxpayers bear the burden of proving otherwise.3 Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933). 3Petitioner has not raised the issue of sec. 7491(a) which shifts the burden of proof to the Commissioner in certain situations. This Court concludes that sec. 7491 does not apply because petitioner has not produced any evidence that establishes the preconditions for its application.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011