- 10 -
The relevant portions of the Form 872-A stated as follows:
(1) The amount(s) of any Federal income tax due on any
return(s) made by or for the above taxpayer(s) for the
period(s) ended December 31, 1981 may be assessed on or
before the 90th (ninetieth) day after: (a) the Internal
Revenue Service office considering the case receives Form
872-T, Notice of Termination of Special Consent to Extend
the Time to Assess Tax, from the taxpayer(s); or (b) the
Internal Revenue Service mails Form 872-T to the
taxpayer(s); or (c) the Internal Revenue Service mails a
notice of deficiency for such period(s)* * *
(2) This agreement ends on the earlier of the above
expiration date or the assessment date of an increase in the
above tax that reflects the final determination of tax and
the final administrative appeals consideration. An
assessment for one period covered by this agreement will not
end this agreement for any other period it covers. Some
assessments do not reflect a final determination and appeals
consideration and therefore will not terminate the agreement
before the expiration date. Examples are assessments of:
(a) tax under a partial agreement; (b) tax in jeopardy; (c)
tax to correct mathematical or clerical errors; (d) tax
reported on amended returns; and (e) advance payments.
On June 17, 1985, the Service assessed the additional tax
owed with respect to the art tax shelter adjustments for the 1981
year. On April 13, 1988, the Service received from the Joneses a
Form 872-T, terminating the consent granted by the Form 872-A for
the 1981 taxable year. On June 21, 1988, within 90 days of its
receipt of the Form 872-T, the Service issued to the Joneses a
statutory notice of deficiency covering both the 1981 and 1982
taxable years.
OPINION
The first issue we must decide is whether the period of
limitation on assessment of the deficiency in and additions to
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