Walter R. Ripley, Donee-Transferee of Mildred M. Ripley, Donor, and Melynda H. Ripley, Donee-Transferee of Mildred M. Ripley, Donor - Page 8

                                        - 8 -                                         
          entered.  Also, at the time of the issuance of the deficiency               
          notice (February 9, 1990), there remained unexpired 68 days of              
          the section 6501 period of limitations, which had been extended             
          to April 18, 1990.  That remaining period of 68 days was                    
          suspended by the issuance of the deficiency notice, and should              
          therefore be further added to the 150-day suspension provided by            
          section 6503(a)(1), for a total of 218 days.  Such addition of              
          the unexpired 68 days to the period of suspension is firmly                 
          supported by established law.  It has long been held that it is             
          appropriate to add or "tack on" the days remaining when the                 
          limitations period was interrupted or suspended by the issuance             
          of a deficiency notice.  McClamma v. Commissioner, 76 T.C. 754,             
          758 (1981); see also Bales v. Commissioner, 22 T.C. 355, 359                
          (1954) (quoting Olds & Whipple v. United States, 86 Ct. Cl. 705,            
          22 F. Supp. 809, 819 (1938) (interpreting section 277(b) of the             
          1926 Revenue Act, the predecessor of section 6503(a)(1):  "We               
          think the language of the statute is not reasonably susceptible             
          to any other construction.  It plainly states that the running of           
          the statute of limitation shall be suspended and this can only              
          mean that when the period of suspension ceases the limitation               
          period again commences to run.")).                                          
               With the addition of the 68 days to the 150 days, the                  
          limitations period for assessment against the donor expired no              
          earlier than October 1, 1992.  Since, pursuant to section                   
          6901(c), the limitations period for assessment of the transferees           




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011