Walter R. Ripley, Donee-Transferee of Mildred M. Ripley, Donor, and Melynda H. Ripley, Donee-Transferee of Mildred M. Ripley, Donor - Page 9

                                        - 9 -                                         
          extended for 1 year after that date, the period for assessment of           
          petitioners as transferees expired no earlier than 1 year after             
          October 1, 1992, namely, October 1, 1993.  Because the                      
          Commissioner issued the notices of transferee liability on                  
          September 17, 1993, the limitations period against petitioners              
          had not expired, and the notices were timely.                               
               Petitioners argue that the limitations period for assessment           
          against the donor ended on the date the assessment was made,                
          April 7, 1992.  Petitioners focus on the donor's waiver of the              
          section 6213(a) restrictions on assessment.  They contend that              
          the waiver put an end to the suspension of the period of                    
          limitations.                                                                
               This argument has been considered and rejected by other                
          courts.  In Sherry Frontenac, Inc. v. United States, 868 F.2d 420           
          (11th Cir. 1989), the taxpayers asserted that their waiver of the           
          prohibition against assessment pursuant to section 6213(a)                  
          removed the 90-day appeal period provided in sections 7481(a) and           
          7483.  Id. at 423.  In an opinion with which we agree, the                  
          Eleventh Circuit held that the waiver under section 6213(a) did             
          not have any effect upon the date when the orders became final              
          under sections 7481(a) and 7483.  Id.  The U.S. Claims Court                
          followed this decision in Pesko v. United States, 19 Cl. Ct. 687,           
          689 (1990) ("the waiver had no impact on the availability to the            
          IRS of the entire 150-day tolling period"), affd. 918 F.2d 1581             
          (Fed. Cir. 1990).  We follow Pesko and Sherry Frontenac.                    




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