- 36 -
taxpayer; or (3) the IRS mailed a notice of deficiency to the
taxpayer. On November 21, 1989, Addington and the Sanns, through
their counsel, executed Forms 872-T for the purpose of
terminating the Forms 872-A. The Forms 872-T were received by
the IRS on November 27, 1989. The 90th day after November 27,
1989 was February 25, 1990.
On December 20, 1989, a Notice of Beginning of
Administrative Proceedings (NBAP) with respect to Foam's 1982 tax
year was issued to Foam's TMP and to each of petitioners. One
day later, on December 21, 1989, an FPAA with respect to Foam's
1982 tax year was issued to Foam's TMP and to each of
petitioners. Under section 6229(d), the issuance of the FPAA
operated to suspend the period of limitations until May 20, 1991.
In addition, because the NBAP and FPAA were issued within 120
days of each other, petitioners had the option to elect to have
their partnership items treated as nonpartnership items. Sec.
6223(e). On January 31, 1990, petitioners, through their
respective counsel, so elected.
The consequences of petitioners' elections to treat their
partnership items as nonpartnership items were twofold. First,
petitioners no longer could petition for, or be treated as
parties to, any judicial review of the FPAA. Secs. 6226(d)(1)(A)
and (d)(2), 6231(b)(1)(D), 6223(e)(3)(B). Second, under section
6229(f), the limitations periods with respect to petitioners'
former partnership items could not expire less than 1 year later,
or January 31, 1991. Respondent issued the 1982 notices of
Page: Previous 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 NextLast modified: May 25, 2011