- 12 -
unreported income for 1985. The prosecution’s sole grounds for
contending that petitioner filed a false tax return for 1985 was
that petitioner did not report as income deposits into his
personal accounts of parts of the loan proceeds. Since these
were the only allegations that petitioner’s return was false, it
was essential to petitioner’s criminal conviction under section
7206 that the jury concluded that to some extent the money
deposited in petitioner’s accounts was income to petitioner.
Collateral estoppel applies only to the extent a finding was
necessary to the result in petitioner’s criminal case. We
conclude that petitioner is barred by the doctrine of collateral
estoppel from disputing that he received but intentionally failed
to report some amount of unreported income in 1985.
B. Whether the Statute of Limitation Bars Assessment of Tax
Petitioner filed his 1985 tax return on December 4, 1987.
The notice of deficiency was mailed slightly less than 6 years
later, on November 22, 1993. Petitioner contends that the notice
of deficiency was untimely because it was mailed more than 3
years after petitioner filed his 1985 return on December 4, 1987.
Section 6501 bars sending a notice of deficiency more than 3
years after the later of (1) the date the tax return was filed,
or (2) the due date of the tax return unless an exception to the
three-year time limit applies. However, the Commissioner has 6
years to send the notice of deficiency if the Commissioner proves
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011