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The statutory text reveals that Congress has generally given
the Commissioner 3 years after the filing of a return to assess
tax for the taxable year covered therein. See sec. 6501(a). The
statutory text also reveals that Congress has extended this
3-year period indefinitely in cases where a taxpayer fails to
file a return. See sec. 6501(c)(3). Because the Fund did not
file tax returns for the subject years, our decision turns on
whether the Fund was required to file returns for those years.
We do not read the regulations on which the Fund relies to
except the Fund from a requirement that it file returns for the
subject years. Although the Secretary, pursuant to the authority
delegated to him in section 6012(a), has promulgated rules in
those regulations under which certain nonresident taxpayers are
excepted from filing a return in a certain situation, see sec.
1.6012-1(b)(2)(i), Income Tax Regs., these rules do not apply to
the facts at hand. First, the Fund's tax liability is not "fully
satisfied" by amounts that have been withheld. Although the Fund
states correctly that the Fund did satisfy this requirement at
one time, the Fund ceased to meet this requirement when it
requested and received a refund of the withheld tax. The fact
that the Fund claimed a refund of these withheld amounts also
removed it from the regulatory exception. Section 1.6012-
1(b)(2)(i), Income Tax Regs., states specifically that that
exception is not applicable where, as is the case here, the
taxpayer claims a refund of an overpaid tax.
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Last modified: May 25, 2011