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to which the election relates. Such deficiency may be
assessed notwithstanding the provisions of any law or
rule of law which would otherwise prevent such an
assessment. [Emphasis added.]
Section 183(e)(4) explicitly provides that with respect to
the taxpayer's activity for which a section 183(e) election is
made, the normal statutory period for the "assessment of any
deficiency" shall not expire until 2 years after the required
filing date of the last return in the 5- or 7-year period
referred to in section 183(e). In the Internal Revenue Code, the
terms "deficiency" and "overpayment" have distinctly different
meanings and separate statutes of limitations. Section 6211
generally defines a deficiency as the excess of the correct
amount of tax over the amount shown on the return. Section 6501
governs the period of limitations for assessment of a deficiency.
An "overpayment" is the excess of the amount of tax that has been
paid over the amount of tax that is properly due. Bachner v.
Commissioner, 109 T.C. 125, 128-129 (1997), affd. without
published opinion ___ F.3d ___ (3d Cir., Nov. 20, 1998). The
period of limitations for claiming refunds of overpayments is
contained in section 6511.3 Section 183(e)(4) extends the normal
3In Bachner v. Commissioner, 81 F.3d 1274 (3d Cir. 1996),
the Court of Appeals for the Third Circuit explained why
expiration of the period of limitations for assessments does not
preclude the Commissioner from defending against a claim for
refund of an overpayment.
(continued...)
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