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period of limitations only for "assessment of any deficiency"
related to the activity in question. Crawford v. Commissioner,
97 T.C. 302, 307-308 (1991);4 Estate of Caporella v.
Commissioner, 86 T.C. 285, 296 (1986), affd. 817 F.2d 706 (11th
Cir. 1987). Section 183(e)(4) makes no reference to the
statutory period for claiming refunds of overpayments.
When it enacted section 183(e)(4), Congress was aware of the
difference between the statute of limitations on assessing
deficiencies and the statute of limitations on claiming refunds.
In order to make a section 183(e) election under the law and
(...continued)
"The language in �6501 refers only to 'limitations on
assessment and collection,' and the operative clause of
�6501(a) directs only that taxes 'be assessed within 3
years after the return was filed.' * * * A deficiency
determination, by which the IRS seeks to establish the
taxpayer's additional tax liability, is patently
different from a refund determination, by which the
taxpayer seeks repayment or credit from the IRS." * * *
[Bachner v. Commissioner, 109 T.C. 125, 130 (1997)
(quoting Bachner v. Commissioner, 81 F.3d at 1277),
affd. without published opinion __ F.3d __ (3d Cir.,
Nov. 20, 1998).]
4In Crawford v. Commissioner, 97 T.C. 302 (1991), we held
that a written agreement to extend the period of limitations that
was executed after the normal 3-year period of limitations, but
before the expiration of the period provided in sec. 183(e),
operated to extend the limitations period. However, we also held
that the written agreement was only effective to the extent that
the period of limitations had been extended by sec. 183(e)(4).
Therefore, we held that the written agreement to extend the
period of limitations "would be effective only with regard to
assessments arising from deficiencies attributable to the section
183 activity." Id. at 307 (emphasis added).
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