Badaracco et al. v. Commissioner of Internal Revenue (464 U.S. 386)
U.S. Supreme Court · decided January 17, 1984 · Supreme Court Database (Spaeth)
- Citation
- 464 U.S. 386 · 104 S. Ct. 756
- Decided
- January 17, 1984
- Term
- October Term 1983
- Vote
- 8–1
- Majority author
- Justice Blackmun
- Issue area
- Federal Taxation
- Disposition
- Affirmed
- Outcome
- Petitioning party lost
- Ideological direction
- Liberal
Opinion excerpt
Justice Blackmun delivered the opinion of the Court. These cases focus upon §6501 of the Internal Revenue Code of 1954, 26 U. S. C. § 6501. Subsection (a) of that statute establishes a general 3-year period of limitations “after the return was filed” for the assessment of income and certain other federal taxes. Subsection (c)(1) of §6501, however, provides an exception to the 3-year period when there is “a false or fraudulent return with the intent to evade tax.” The tax then may be assessed “at any time.” The issue before us is the proper application of §§ 6501(a) and (c)(1) to the situation where a taxpayer files a false or fraudulent return but later files a nonfraudulent amended return. May a tax then be assessed more than three years after the filing of the amended return? l-H No. 82-11*58. Petitioners Ernest Badaracco, Sr., and Ernest Badaracco, Jr., were partners in an electrical contracting business. They filed federal partnership and individual income tax returns for the calendar years 1965-1969, inclusive. “[F]or purposes of this case,” these petitioners concede the “fraudulent nature of the original returns.” App. 37a. In 1970 and 1971, federal grand juries in New Jersey subpoenaed books and records of the partnership. On August 17, 1971, petitioners filed nonfraudulent amended returns for the tax years in question and paid the additional basic taxes shown thereon.…
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