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properly includible therein which is in excess of
25 percent of the amount of gross income stated in
its return, subsection (a) shall be applied by
substituting “6 years” for “3 years”.
Section 6229, like other statutes of limitation, receives strict
construction in favor of the Government when taxpayers seek to
have it applied to bar the Government’s rights. See Badaracco v.
Commissioner, 464 U.S. 386, 391 (1984); E.I. Du Pont De Nemours &
Co. v. Davis, 264 U.S. 456, 462 (1924); Rhone-Poulenc Surfactants
& Specialties v. Commissioner, supra at 540.
In drafting section 6229, Congress did not intend to create
a completely separate statute of limitations for assessments
attributable to partnership items. See Rhone-Poulenc Surfactants
& Specialties v. Commissioner, supra at 545. Instead, section
6229 merely supplements section 6501, and, although section 6229
does not repeat all of the terms and provisions already set forth
in section 6501, the adequate disclosure provision of section
6501(e)(1)(A)(ii) is encompassed in section 6229(c)(2).
Consequently, the precedents interpreting section
6501(e)(1)(A)(ii) are equally applicable to section 6229(c)(2).
Section 6501(e)(1)(A)(ii) states:
(ii) In determining the amount omitted from gross
income, there shall not be taken into account any
amount which is omitted from gross income stated in the
return if such amount is disclosed in the return, or in
a statement attached to the return, in a manner
adequate to apprise the Secretary of the nature and
amount of such item. [Emphasis added.]
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Last modified: May 25, 2011