Tax News

CCH (cch.taxgroup.com) reports:

  The statute of limitations on assessment remained open indefinitely and the Code Sec. 6663(a) fraud penalty could be imposed on an individual who had previously pled guilty to tax evasion for the same tax years. Although the taxpayer maintained that his prior tax-evasion plea meant only that he committed evasion at some point, and not necessarily in each of the years for which he entered the plea, his allocution at the time his plea was entered acknowledged tax evasion in all of the years.

  Before the penalty could be imposed, it was necessary to determine whether the normal three-year statute of limitations on assessment under Code Sec. 6501(a) applied, or whether an assessment could be made at any time under Code Sec. 6501(c)(1) because the taxpayer filed false or fraudulent returns. The taxpayer's prior criminal conviction collaterally estopped the taxpayer from relitigating the issue of whether he fraudulently underpaid his income taxes in each of the years for which he entered a guilty plea.

J.B. Williams, III, TC Memo. 2009-81, Dec. 57,791(M)

Other References:

 
Code Sec. 6501

  CCH Reference - 2009FED ¶38,967.283

 
Code Sec. 6663

  CCH Reference - 2009FED ¶39,658.40

  Tax Research Consultant

  CCH Reference - TRC IRS: 27,200

CCH Reference - TRC PENALTY: 6,162