Graham

MEMORANDUM *

Appellants Albert M. Graham and Martha A. Graham appeal a decision of the United States Tax Court, upholding the Commissioner’s determination of deficiencies in Appellants’ federal income tax and imposition of penalties. Appellants contend that the Tax Court erred in determining their tax liability and in finding that Graham acted fraudulently in omitting certain items of income from Appellants’ income tax returns. 1 We have jurisdiction pursuant to 26 U.S.C. § 7482 , and we affirm in all respects.

We agree with the Tax Court that the three-year limit found in 26 U.S.C. § 6501 (a) does not apply because the Tax Court did not clearly err in finding that the underpayment of income related to the Anis Recovery Fund partnership was fraudulent. 2 See Maciel v. Comm’r, 489 F.3d 1018, 1027 (9th Cir.2007) (reviewing for clear error the Tax Court’s factual findings, including valuation of assets and findings of fraud). The record contains numerous badges of fraud that support the Tax Court’s finding that Graham acted fraudulently. See Estate of Trompeter v. Comm’r, 279 F.3d 767, 773 (9th Cir.2002) (discussing badges of fraud that courts have relied upon in finding that a…