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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
4(...continued)
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:
(continued...)
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