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$23,111,671 for 1987, 1988, and 1989, respectively, subject to
any correlative adjustments to UCFSC's returns. The foregoing
amounts are based on the portion of petitioner's FSC
recomputations attributable to its section 861(b) expense
adjustments, as alleged in petitioner's first amendment.
As a further alternative argument, petitioner maintains
that, if taxpayers must satisfy any dual limitations requirement
under the Regulation, the period applicable to the party in the
deficiency position must be based on section 6501 rather than
section 6511. (The limitations periods contained in sections
6501 and 6511 are not uniformly parallel.) In that connection,
petitioner argues that its claims for additional FSC commission
expenses for 1988 and 1989 in the amounts of $18,638,279 and
$51,218,650 are timely because they were made within the periods
for petitioner to file claims for refund under section 6511 and
for respondent to assess correlative deficiencies against UCFSC
under section 6501(e)(1)(A) (the 6-year period of limitations
applicable to omissions from gross income in excess of 25 percent
of the gross income reported on the taxpayer's return).
(Petitioner acknowledges that both of its claims for 1987, as
well as its revised claim for 1988, came after the 6-year period
of limitations had expired with respect to UCFSC for those years,
and are thus barred under this interpretation of the Regulation.)
Respondent argues, on the other hand, that petitioner's
claims are proscribed by the plain language of the Regulation.
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