-307-
Consequently, Kanter and Ballard are liable for additions to tax
for fraud as asserted in respondent’s amended pleadings.125
Consistent with the foregoing, we reject Kanter’s and
Ballard’s assertions that the period of limitations governing
assessment and collection has expired for some of the years at
issue. In short, the period of limitations remains open for each
of years at issue pursuant to section 6501(c)(1) which provides
that tax may be assessed at any time in the case of a false and
fraudulent tax return with the intent to evade tax.
Issue III. Whether Commitment Fees Paid to Century Industries,
Ltd., During 1981 to 1984 and 1986 Are Includable in
Kanter’s Income (STJ report at 86-92)126
FINDINGS OF FACT
At issue is whether certain entities that claimed to be
partners in Century Industries, Ltd. (Century Industries or the
partnership) should be disregarded as partners of the partnership
for Federal income tax purposes and whether 50 percent of the
partnership’s income for 1981, 1982, 1983, 1984, and 1986,
instead, constitutes income earned by Kanter for those years.
125 Inasmuch as respondent asserted various other additions
to tax against Kanter and Ballard strictly as alternatives to
respondent’s assertion of the fraud additions (which we sustained
above with regard to income Kanter and Ballard earned from The
Five), we need not consider the alternative additions to tax.
126 The remainder of the issues discussed in this report
pertain only to the Kanters. Hereinafter, references to
petitioners are to the Kanters.
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