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against petitioners was barred by limitations, we must first
determine when the donor's period of limitations expired.
Section 6501(a) provides generally that assessments of tax
must be made within 3 years after the taxpayer files a return.
Pursuant to section 6501(c)(4), this 3-year period may be
extended by the consent in writing of the Secretary and the
taxpayer, and the expiration period thus extended may be further
extended by subsequent timely agreements in writing. In this
case, the donor and the Commissioner entered into valid
successive consent agreements (Forms 872) extending the
assessment period to April 18, 1990.
However, section 6503(a)(1) suspends the 3-year section
6501(a) limitations period (as extended) upon the issuance of a
statutory notice of deficiency. Section 6503(a)(1) provides in
pertinent part:
The running of the period of limitations provided in
section 6501 * * * shall (after the mailing of the
notice under section 6212(a)) be suspended for the
period during which the Secretary is prohibited from
making the assessment or from collecting by levy or a
proceeding in court (and in any event, if a proceeding
in respect of the deficiency is placed on the docket of
the Tax Court, until the decision of the Tax Court
becomes final), and for 60 days thereafter. [Emphasis
added.]
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