- 37 -
II. Period of Limitations
Respondent concedes that 1976 and 1984 are closed if the
Court determines that petitioner did not file fraudulent tax
returns for those years. We have so found, and we agree with
respondent.
The parties agree that pursuant to section 6501(h) the
period of limitations on assessment for 1985 remains open for the
deficiency attributable to the carryback of the 1988 NOL.
Respondent, however, argues that 1985 is open not only for the
deficiency attributable to the 1988 NOL carryback, but for any
deficiency for 1985 up to the amount of the NOL carryback. We
are unable to agree with respondent's interpretation of this
provision.
Section 6501(h) provides an extended period for assessment
in the case of a deficiency attributable to an NOL carryback.
Such a deficiency may be assessed at any time before the
expiration of the period within which a deficiency for the year
generating the NOL carryback may be assessed. See sec. 6501(h).
The extended period for the assessment of deficiencies under
section 6501(h) applies only to deficiencies attributable to NOL
carrybacks. See Bouchey v. Commissioner, 19 T.C. 1078, 1081
(1953); Leuthesser v. Commissioner, 18 T.C. 1112, 1125 (1952).
Thus, deficiencies for 1985, the NOL carryback year, that are
attributable to other items (i.e., non-NOL carryback items) are
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