Estate of Algerine Allen Smith - Page 11




                                       - 11 -                                         
          but does not disallow any ascertainable amount of the Tax Court’s           
          deficiency determination.                                                   
               We note the recent case of Wechsler v. United States, 2000             
          WL 713407 (S.D.N.Y. 2000), which granted the taxpayers relief               
          under section 7486 where a decision of this Court was reversed              
          and remanded.  In that case, the Tax Court had initially denied             
          the taxpayers’ motion for summary judgment because the Court                
          found that valid waivers were executed which extended the                   
          applicable 3-year period of limitations.  See Transpac Drilling             
          Venture 1982-16 v. Commissioner, T.C. Memo. 1994-26.  In doing              
          so, the Tax Court did not address the Commissioner’s alternative            
          argument that the 6-year period of limitations might apply.  See            
          id.  The Court of Appeals for the Second Circuit reversed the Tax           
          Court’s holding that the waivers were validly executed and                  
          remanded for a determination of whether the 6-year period of                
          limitations applied.  See Transpac Drilling Venture 1982-12 v.              
          Commissioner, 147 F.3d 221, 229 (2d Cir. 1998).  The taxpayers’             
          subsequent motion for relief under section 7486 was granted in              
          Wechsler v. United States, 2000 WL 713407 (S.D.N.Y. 2000), and              
          the Commissioner’s motion to vacate that judgment was denied in             
          Wechsler v. United States, 2000 WL 1253267 (S.D.N.Y. 2000).  The            
          District Court explained that the Commissioner’s deficiency                 
          determination was unenforceable unless the Commissioner could               
          show that the 6-year period of limitations applied but emphasized           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011