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issue made petitioner’s returns false and fraudulent for the
years at issue. The parties also agree that petitioner himself
did not have the intent to evade tax, but Mr. Goosby claimed the
false deductions for the years at issue on petitioner’s returns
with the intent to evade tax.2
Discussion
The parties have stipulated that the returns petitioner
filed for the years at issue were fraudulent. The parties
disagree, however, whether the fraudulent intent required to keep
the limitations period open indefinitely under section 6501(c)(1)
must be that of the taxpayer, petitioner.
The Limitations Period
We shall begin by describing the general principles of the
limitations period for assessment of income taxes. The
Commissioner must generally make such an assessment within a 3-
year period after a taxpayer files his or her return. Sec.
6501(a). An exception to this general rule exists, however, for
a false or fraudulent return with the intent to evade tax. Sec.
6501(c)(1). In those situations, the Commissioner may assess the
tax, or commence a proceeding in court for the collection of the
tax, at any time. Sec. 6501(c).
Petitioner alleges that the limitations periods for
assessment of taxes with respect to petitioner’s returns for the
2The Court ordered, and the parties filed, simultaneous
opening briefs. The Court also ordered the parties to each file
simultaneous answering briefs on or before Jan. 8, 2007.
Respondent timely filed an answering brief, but petitioner failed
to file an answering brief.
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