114 T.C. No. 34
UNITED STATES TAX COURT
RHONE-POULENC SURFACTANTS AND SPECIALTIES, L.P.,
GAF CHEMICALS CORPORATION, A PARTNER OTHER THAN
THE TAX MATTERS PARTNER, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 2125-98. Filed June 29, 2000.
R’s notice of final partnership administrative
adjustment (FPAA) treated 1990 transfers of business
assets to P’s partnership as taxable sales by P rather
than as nontaxable transfers in exchange for
partnership interests under sec. 721, I.R.C. P, a
partner other than the tax matters partner, filed the
petition and then moved for summary judgment on the
ground that the period of limitations for assessing any
tax resulting from this partnership proceeding has
expired. R alleges that failure to report the sale on
P’s return resulted in omission of more than 25 percent
of reported gross income so that, pursuant to sec.
6501(e)(1)(A), I.R.C., the period for assessing tax did
not expire until 6 years after P’s return was filed.
The FPAA was issued several days before the expiration
of 6 years from the filing of P’s 1990 return.
Held: (1) Sec. 6229(a), I.R.C., includes an
alternative, minimum period of limitations, applicable
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