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Bufferd v. Commissioner, 506 U.S. 523, 3 (1993)

Legal Research Home > United States Supreme Court > 506 U.S. > Bufferd v. Commissioner, 506 U.S. 523, 3 (1993)

Cite as: 506 U. S. 523 (1993)

Opinion of the Court

the corporate form and to lessen the tax burden on such businesses. The statute accomplishes these goals by means of a pass-through system under which corporate income, losses, deductions, and credits are attributed to individual shareholders in a manner akin to the tax treatment of partnerships. See §§ 1366-1368.¹ In addition, since 1966, "S corporations" have been liable for certain capital gains and other taxes. 80 Stat. 111, 113; 26 U. S. C. §§ 1374, 1378.

Petitioner was treasurer and a shareholder of Compo Financial Services, Inc., an S corporation. On February 1, 1980, Compo filed a return for the tax year of December 26, 1978, to November 30, 1979, as required by § 6037(a) of the Code.² On that return, Compo reported a loss deduction and an investment tax credit arising from its partnership interest in a venture known as Printers Associates. Petitioner and his wife filed a joint return for 1979 on April 15, 1980.³ Their return claimed a pro rata share of the deduction and credit reported by Compo pursuant to the pass-through provisions of Subchapter S.

Code § 6501(a) establishes a generally applicable statute of limitations providing that the Internal Revenue Service may assess tax deficiencies within a 3-year period from the date

¹ Subchapter S was substantially amended and recodified by the Sub-chapter S Revision Act of 1982, 96 Stat. 1669. The pass-through provisions in effect in the period relevant to this case, see 26 U. S. C. §§ 1373- 1374 (1976 ed.), differ in certain respects from the present provisions. These differences do not affect the case.

² In relevant part, the statute reads: "§ 6037. Return of S corporation "(a) In general

"Every S corporation shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A [and other information]. Any return filed pursuant to this section shall, for purposes of chapter 66 (relating to limitations), be treated as a return filed by the corporation under section 6012."

³ Phyllis Bufferd settled separately with the Commissioner and is not a party to this action.

525

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