Harvey L. Hoover - Page 22

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          the requirements of section 7491(a)(2), we find that the burden             
          of proof does not shift to respondent pursuant to section                   
          7491(a)(1).  However, as explained infra, respondent has the                
          burden of proving fraud for purposes of the section 6663 penalty            
          and the section 6501(c) exception to the 3-year statute of                  
          limitations for assessment.12                                               
          II.  1989--Statute of Limitations                                           
               Petitioner argues that respondent assessed the 1989                    
          deficiency after the period of limitations had expired.                     
          Specifically, with respect to the 1989 taxable year, petitioner             
          argues on brief that “The assessments for 1989 were not within 3            
          yrs next to the year of investigation.  The Internal Revenue                
          Service assessment date were [sic] June 28, 1999”.                          
               Respondent argues that “Petitioner did not dispute the                 
          deficiency for tax year 1989 in his petition”.  We disagree.                
          Petitioner was not represented by counsel.  His petitions are not           
          models of clarity.  However, it seems to us that the best reading           
          is that he was contesting respondent’s deficiency determinations            
          for all years in the notice of deficiency.  The petition in                 
          docket No. 15557-99 was filed using a preprinted Government form.           
          Paragraph 3 of the form had space for listing only 3 years of               
          disputed deficiencies.  In paragraph 3 of his petition filed in             

               12 The Commissioner bears the burden of proving fraud by               
          clear and convincing evidence.  Secs. 7454(a), 7491(c); Rule                

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