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Discussion
Section 6501(a) provides that the Commissioner generally has
3 years from the date of the filing of a return to assess the
tax. There are several exceptions listed in section 6501 (for
cases in which, for example, fraud or substantial omission of
items are involved) which the parties agree do not apply here.
Respondent did not issue the 1995 notice of deficiency within the
time required by section 6501. Thus, this failure would act as a
bar to the assessment of tax for 1987 unless respondent can
obtain the benefit of the mitigation provisions of sections 1311
through 1314.
The mitigation provisions were first enacted in 1938 to
prevent the Government or the taxpayer from obtaining "an unfair
benefit * * * by assuming an inconsistent position and then
taking shelter behind the protective barrier of the statute of
limitations." S. Rept. 1567, 75th Cong., 3d Sess. 49 (1938),
1939-1 C.B. (Part 2) 779, 815. These are very technical
provisions, written to cover only specific instances of
inconsistent treatment, and are not intended to grant the Court
sweeping equitable powers. Bolten v. Commissioner, 95 T.C. 397,
403 (1990), and cases cited thereat. On the other hand, one must
not construe the provisions so strictly or so narrowly as to
undermine the purpose for which they were enacted. Id.
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