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On December 31, 1997, respondent mailed notices of
deficiency to petitioners relating to tax years 1989, 1990, and
1991. Petitioners filed their 1990 and 1991 tax returns on April
14, 1998. During 1990, petitioners sold BHC Securities, Inc.
stock but did not report the sale on their 1990 return. During
1991, petitioners sold Bear Stearns Colonial State Bank stock.
On their 1991 return, petitioners reported a $5,505 capital loss
relating to this sale.
OPINION
Petitioners contend that, pursuant to section 6503(h),
assessment of their 1989 tax is barred by the expiration of the
period of limitation. Petitioners' contention is meritless.
Petitioners filed their bankruptcy petition on July 12, 1993,
filed their 1989 return on April 7, 1994, and were discharged
from bankruptcy on April 14, 1997. Thus, pursuant to section
6501, the period of limitation for issuing a notice of deficiency
relating to petitioners' 1989 tax would not expire until June
2000 (i.e., 60 days after petitioners' discharge from bankruptcy
plus the 3-year limitation period on assessment). See secs.
6501(a), 6503(h); 11 U.S.C. sec. 362(a), (c)(2) (1994).
Respondent issued the 1989 notice of deficiency on December 31,
1997. Accordingly, assessment of petitioners' 1989 tax was not
barred by the expiration of the period of limitation.
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