Rhone Poulenc Surfactants and Specialties, L.P. - Page 29




                                       - 29 -                                         
          of limitations for assessments attributable to partnership or               
          affected items.                                                             
                    g.  Nonfilers                                                     
               In response to petitioner’s policy arguments, respondent               
          notes that petitioner’s position leaves a gap with respect to               
          nonfilers; i.e., partners who fail to file their own returns.               
          Respondent states:                                                          
               under petitioner’s proposed interpretation of section                  
               6229, if a timely filed partnership return reports                     
               income, the Commissioner would be unable to assess tax                 
               attributable to such income more than three years after                
               the partnership return is filed despite the fact that a                
               partner, the only party against whom tax may be                        
               assessed, has filed no return.                                         
          Respondent’s point is well taken.  Congress has determined that             
          the period for assessment does not run with respect to nonfilers.           
          See sec. 6501(c)(3).  Section 6229(c)(3) provides that where no             
          partnership return is filed, tax attributable to partnership                
          items (or affected items) may be assessed at any time.  Section             
          6229 contains no parallel provision for partners who fail to file           
          their own returns.  This is undoubtedly because the applicable              
          section 6501 period never begins to run for a nonfiling partner.            
                    h.  Conclusion                                                    
               Respondent carried out the unified examination of the                  
          partnership that Congress had in mind when it enacted the TEFRA             
          partnership provisions.  As a result of that examination,                   
          respondent determined that an adjustment was necessary and issued           






Page:  Previous  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  Next

Last modified: May 25, 2011