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for the Southern District of California to quash the summons. On
September 22, 1994, respondent withdrew the summons, and the
District Court entered an order denying the petition to quash on
October 25, 1994.
On November 30, 1994, respondent issued another third-party
recordkeeper summons to International Savings Bank requesting
information concerning petitioners' 1991 taxable year.
Petitioners filed a motion to quash the summons on December 20,
1994. The District Court entered its order denying the petition
to quash and enforcing the summons on March 13, 1995.
On June 29, 1995, respondent issued a notice of deficiency.
OPINION
The first issue we must decide is whether the period of
limitations for assessment of a deficiency had expired when
respondent issued the notice of deficiency in this case. Section
6501(a) sets forth the general rule that respondent shall assess
an income tax within 3 years from the date the taxpayer's return
is filed. Section 7609(e)(1) suspends the period of limitations
when a taxpayer initiates a proceeding to quash a third-party
recordkeeper summons issued with respect to that taxpayer's
liability. In such a case, the period of limitations "shall be
suspended for the period during which a proceeding, and appeals
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