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the taxable periods in issue prior to the date respondent sent
the notice of deficiency in issue in the instant case to
petitioner. Pursuant to section 6501(g)(2),3 the good faith
filing of a Form 990 by an exempt organization commences the
running of the period of limitations against assessment of tax on
unrelated business income if the organization is later held to be
a taxable organization. California Thoroughbred Breeders
Association v. Commissioner, 47 T.C. 335, 339 (1966). Because
petitioner pled the bar of the statute of limitations, petitioner
must show that the statutory notice was issued beyond the
normally applicable period of limitations. In Adler v.
Commissioner, 85 T.C. 535, 540 (1985), we stated:
The bar of the statute of limitations is an
affirmative defense, and the party raising it must
specifically plead it and carry the burden of proof
with respect thereto. Rules 39, 142(a). Where the
party pleading such issue makes a showing that the
statutory notice was issued beyond the normally
applicable statute of limitations, however, such party
has established a prima facie case. At that point, the
burden of going forward with the evidence shifts to the
other side, and the other party has the burden of
introducing evidence to show that the bar of the
statute is not applicable. Where the other party makes
such a showing, the burden of going forward with the
evidence then shifts back to the party pleading the
3 Sec. 6501(g)(2) provides:
If a taxpayer determines in good faith that it is an
exempt organization and files a return as such under
section 6033, and if such taxpayer is thereafter held
to be a taxable organization for the taxable year for
which the return is filed, such return shall be deemed
the return of the organization for purposes of this
section.
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