Stephen P. and Jutta A. Maranto - Page 6

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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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