Ross M. Muir - Page 5

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            contends that the period of limitations was extended by agreement                          
            and that neither respondent nor petitioner terminated the                                  
            agreement before issuance of the notice of deficiency.  We agree                           
            with respondent.                                                                           
                  Section 6501(a) generally provides that taxes imposed by the                         
            Internal Revenue Code must be assessed within 3 years from the                             
            time that the return is filed.  The notice of deficiency was not                           
            sent to petitioner within 3 years of his filing of either the                              
            return for 1980 or 1981.  Thus, respondent's determinations will                           
            be time-barred, unless they fall within an exception to the                                
            general rule.                                                                              
                  One exception is under section 6501(c)(4), which provides                            
            that the period for assessment may be extended by agreement, if                            
            such agreement is executed before the period of assessment has                             
            expired.5  "Form 872-A plainly constitutes such an agreed-upon                             

            should not extend the time to assess tax "to twelve years after                            
            [the] notice of deficiency [was issued] or sixteen years after                             
            the original signing of form 872A."                                                        
                  Petitioner is mistaken in his contentions about the                                  
            extension of time provided by the Forms 872-A.  The agreements to                          
            extend the time to assess terminated upon respondent's issuance                            
            of the notice of deficiency.  Thus, the agreement to extend the                            
            time to assess the tax due for 1980 terminated less than 4 years                           
            after execution, and the agreement to extend the time to assess                            
            the tax due for 1981 terminated within 3 years of execution.                               
                  The period of limitations remained suspended after the                               
            mailing of the notice of deficiency by reason of sec. 6503.  See                           
            also sec. 6213(a).                                                                         
                  5Section 6501(c)(4), provides in relevant part:                                      

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