- 8 - assess tax against petitioner with respect to any issue. The first unrestricted consent, executed on October 7, 1994, extended the limitations period until June 30, 1995; the second unrestricted consent, executed on May 8, 1995, extended the limitations period until December 31, 1995; and the third unrestricted consent, executed on November 9, 1995, extended the limitations period until March 15, 1996. On January 11, 1996, both petitioner and MS-Puerto Rico executed restricted consents to extend the limitations period for the 1990 and 1991 tax years to December 31, 1996. The restricted consent executed by petitioner read, in pertinent part, as follows: RESTRICTIVE LANGUAGE The amount of any deficiency assessment is to be limited to that resulting from the following two potential adjustments, including any consequential changes to other items based on such adjustments: (1) The Service's proposed adjustment relating to the disallowance of Microsoft's use of the profit split method of computing taxable income for purposes of section 936(h) of the Internal Revenue Code of 1986 with respect to its transactions with Microsoft Puerto Rico and any transfer pricing adjustments resulting from such disallowance; and (2) The Service's proposed adjustments relating to the taxpayer's treatment of subsidiary and OEM royalties, respectively, as income from qualifying export property for FSC purposes pursuant to section 927(a) of the Internal Revenue Code of 1986. The restricted consent executed by MS-Puerto Rico contained nearly identical restrictive language to that of petitioner's, butPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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