Allen v. Comm'r
United States Tax Court
P's returns for the years at issue were false and fraudulent due to the fraudulent intent of the return preparer. P himself did not have fraudulent intent and did not file the returns with the intent to evade taxes. R issued P a deficiency notice after the regular 3-year limitations period for assessing P's liabilities had expired.
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P's returns for the years at issue were false and fraudulent due to the fraudulent intent of the return preparer. P himself did not have fraudulent intent and did not file the returns with the intent to evade taxes. R issued P a deficiency notice after the regular 3-year limitations period for assessing P's liabilities had expired. Held: The limitations period is indefinitely extended under sec. 6501(c)(1), I.R.C., if a return is fraudulent, regardless of whether the fraud was committed by the taxpayer or the taxpayer's preparer.
1Opinion of the Court
OPINION
Kroupa, Judge:
Respondent determined a $4,428 deficiency in petitioner’s Federal income tax for 1999 and a $7,784 deficiency in petitioner’s Federal income tax for 2000. We are asked to decide for the first time whether the limitations period for assessing income tax under section 6501(c)(1)1 is extended if the tax on a return is understated due to the fraudulent intent of the income tax return preparer. We conclude that it is.
Background
This case was submitted fully stipulated under Rule 122. The stipulation of facts and the accompanying exhibits are incorporated by this reference.…
2Cases cited14 opinions
- Badaracco v. CommissionerSupreme Court of the United States · 1984
- American Properties, Inc. v. CommissionerUnited States Tax Court · 1957
- Rhone-Poulenc Surfactants & Specialties, L.P. v. CommissionerUnited States Tax Court · 2000
- Joseph P. Lucia v. United States of AmericaCourt of Appeals for the Fifth Circuit · 1973
- Tinkoff v. United StatesCourt of Appeals for the Seventh Circuit · 1936
9 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
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- John Finnegan v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 2019
- Browning v. Comm'rUnited States Tax Court · 2011
- Basr Partnership, by and Through, William F. Pettinati, Sr., Tax Matters Partner v. United StatesUnited States Court of Federal Claims · 2013
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