- 5 - Discussion Under the general rule set forth in section 6501, the Internal Revenue Service is required to assess tax or send a notice of deficiency within 3 years after a Federal income tax return is filed. See sec. 6501(a). In the case of a tax imposed on partnership items, however, section 6229 sets forth special rules to extend the period of limitations prescribed by section 6501 in situations where the partnership tax return was filed later than an individual partner’s return. See sec. 6501(o)(2); Rhone-Poulenc Surfactants & Specialties v. Commissioner, 114 T.C. 533, 540 (2000). Section 6229 provides in pertinent part: SEC. 6229(a). General Rule.--Except as otherwise provided in this section, the period for assessing any tax imposed by subtitle A with respect to any person which is attributable to any partnership item (or affected item) for a partnership taxable year shall not expire before the date which is 3 years after the later of-- (1) the date on which the partnership return for such taxable year was filed, or (2) the last day for filing such return for such year (determined without regard to extensions). * * * * * * * (c) Special Rule in Case of Fraud, Etc.-- * * * * * * * (2) Substantial omission of income.--If any partnership omits from gross income an amountPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011