- 9 -
(2) even if section 6501 is applicable, the section 6501 period
had expired by the time the FPAA was issued because petitioner
had adequately disclosed all of its gross income for the year of
the transfer (and, thus, avoided the 6-year period provided for
in section 6501(e)(1)(A) in the case of a substantial omission of
income), and (3) even if section 6501(e)(1)(A) is applicable and
the section 6501(e)(1)(A) period did not expire before the FPAA
was issued, the issuance of the FPAA did not suspend the running
of the section 6501(e)(1)(A) 6-year period of limitations, which
has since expired.
3. Respondent’s Claims
Respondent argues that, if his adjustments are sustained, a
substantial gain will be recognized to petitioner on account of
the transfer. Respondent claims that petitioner’s omission of
that gain from its corporate return constitutes a substantial
omission of income, which was not adequately disclosed by
petitioner, with the consequence that the section 6501 period of
limitations for the assessment of any tax with respect to
petitioner is 6 years rather than 3 years. Respondent
acknowledges that section 6225(a) imposes a bar on the assessment
of any deficiency attributable to any partnership item until the
completion of the partnership-level proceedings. Respondent
11(...continued)
item. See sec. 6230(a)(1).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011