Richard K. and Marilyn J. Phillips - Page 30




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          therefore the period of limitations for 1989 and 1990 did not               
          expire before April 17, 1995.  Petitioners contend that TBS J.V.            
          filed both a 1989 and a 1990 partnership return and that the                
          existence of an extension agreement executed by Mr. Hoyt for TBS            
          J.V.’s 1989 taxable year is evidence of the timely filing of the            
          underlying 1989 tax return.  Petitioners argue that since Mr.               
          Hoyt was not the TMP for the years in issue, he was not                     
          authorized to sign the extension for TBS J.V.’s 1989 tax year and           
          the period of limitations for 1989 has therefore expired.                   
               The period for assessing tax attributable to a partnership             
          item shall not expire before 3 years after the later of: (1) The            
          date that the partnership return was filed for the taxable year;            
          or (2) the last date for filing the return for the year (without            
          regard to any extensions).  See sec. 6229(a).  When no                      
          partnership return is filed, adjustments attributable to                    
          partnership items may be assessed at any time.  See sec.                    
          6229(c)(3).                                                                 
               Respondent has submitted a certified transcript of TBS                 
          J.V.’s account for the 1989 and 1990 taxable years showing that             
          the IRS has no record of TBS J.V.'s filing a partnership return             
          for either taxable year through September 23, 1998.  Petitioner,            
          however, has been unable to adduce any evidence establishing that           
          TBS J.V. filed a partnership return for either the 1989 or the              
          1990 taxable year.                                                          
               The existence of an extension agreement executed by Mr. Hoyt           
          for TBS J.V.’s 1989 taxable year is not evidence of the timely              




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