Vincent Allen - Page 4

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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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