Estate of James T. Callaway, Deceased, Elizabeth N. Callaway, Executrix, and Elizabeth N. Callaway - Page 10

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                    Prompt assessment (Temporary).--The treatment of                  
               items as partnership items with respect to a partner on                
               whose behalf a request for a prompt assessment of tax                  
               under section 6501(d) is filed will interfere with the                 
               effective and efficient enforcement of the internal                    
               revenue laws.  Accordingly, partnership items of such a                
               partner arising in any partnership taxable year ending                 
               with or within any taxable year of the partner with                    
               respect to which a request for a prompt assessment of                  
               tax is filed shall be treated as nonpartnership items                  
               as of the date that the request is filed.                              
                                                                                     
          In sum, the partnership items of a partner on whose behalf a                
          request for prompt assessment of income tax is filed under                  
          section 6501(d) shall be treated as nonpartnership items as of              
          the date that the request for prompt assessment is filed.5                  


               Petitioners contend that they are entitled to summary                  
          judgment that the notices of deficiency for affected items were             
          issued beyond the period of limitations on the ground that both             
          decedent's and Mrs. Callaway's partnership items converted to               
          nonpartnership items upon the filing of a request for prompt                
          assessment on decedent's behalf on December 23, 1991.  Although             


          5  The filing of a request for prompt assessment on behalf                  
          of a deceased partner presents special enforcement problems with            
          respect to TEFRA partnership proceedings due to the abbreviated             
          period of limitations associated with such a request.  In                   
          particular, sec. 6501(d) establishes an exception to sec. 6501(a)           
          which sets forth the general rule that the amount of any income             
          tax shall be assessed within 3 years after a tax return is filed.           
          Sec. 6501(d) provides that a request for prompt assessment may be           
          filed with respect to any tax (except estate tax) for which a               
          return is required by a decedent, or by his estate during the               
          period of administration, or by a corporation, and that such tax            
          generally shall be assessed within 18 months after filing of such           
          request but not later than 3 years after the return was filed.              




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