Arthur L. Lawrence and Alma P. Lawrence v. Commissioner of Internal Revenue

When a taxpayer has made a full disclosure of his “position” with respect to his gross income on his income tax return (a disclosure that would arrest the attention of the Internal Revenue Service upon its examination of the return), but has not “included” the amount involved as taxable, is the Collector of Internal Revenue subject to the ordinary three year limitation of § 275(a) 1 or to the special five year statute, § 275(c), of the Internal Revenue Code of 1939 ? 2

No fraud was suggested. 3

The Tax Court, rejecting Slaff v. Commissioner, 9 Cir., 220 F.2d 65, held the five year statute…