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period on April 7, 1992, we find that the Form 872 executed in
this case is an extension agreement as described in section
6501(c)(4). As such, the agreement is independently subject to
the application of section 6503(a)(1), which suspends the running
of the limitations period "until the decision of the Tax Court
becomes final and for 60 days thereafter." As described in
detail above, the limitations period of the donor would expire no
earlier than October 1, 1992. According to section 6901(c)(1),
the 1-year extension for assessment against a transferee would
expire no earlier than October 1, 1993. Because the notice of
donee/transferee liability to each petitioner was issued on
September 17, 1993, each notice was timely.
2. The Amount of Petitioners' Transferee Liability
Having concluded that the Commissioner's assessment is not
barred by the statute of limitations, we turn to the amount owed
by petitioners. The donor entered into a stipulated decision
which found a deficiency in gift tax for 1983 in the amount of
$239,124. Section 6324(b), however, limits the liability of a
donee to the value of the gift received. The Commissioner
accordingly issued to each petitioner a notice of
donee/transferee liability in the amount of $93,300.4
Petitioners argue that their liability should be reduced by the
amount of gift tax they now will be required to pay.
4 There is no dispute between the parties that the value of
the property transferred to petitioners was $93,300.
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