- 7 - assessment of the tax. Sec. 6502(a)(1).4 If the taxpayer requests a hearing under section 6330(a)(3)(B), the levy actions that are the subject of the requested hearing and the running of the period of limitations set forth in section 6502 “shall be suspended for the period during which such hearing, and appeals therein, are pending.” Sec. 6330(e)(1). Respondent assessed petitioner’s 1989 and 1990 Federal income tax liabilities on May 21, 1990, and May 20, 1991, respectively--i.e., within 3 years after petitioner filed Federal income tax returns for those years. On March 20, 1999, respondent received petitioner’s Form 12153 requesting a section 6330 hearing for, among other years, taxable years 1989 and 1990. Consequently, as of March 20, 1999, the running of the applicable 10-year limitations period (which as of that date had not expired for taxable years 1989 or 1990) was suspended and remains 4 In 1990, Congress amended sec. 6502(a)(1) to extend the period of limitations for the collection of taxes after assessment from 6 years to 10 years. Omnibus Budget Reconciliation Act of 1990 (OBRA), Pub. L. 101-508, sec. 11317(a), 104 Stat. 1388-458. The 10-year limitations period applies to taxes assessed after Nov. 5, 1990, and to taxes assessed on or before that date if the 6-year limitations period under prior law had not expired as of that date. Id. subsec. (c). Because respondent assessed petitioner’s 1989 tax liability on May 21, 1990, and the 6-year limitations period under prior law had not expired as of Nov. 5, 1990, the 10-year limitations period applies with respect to petitioner’s 1989 tax liabilities. See, e.g., Rocanova v. United States, 955 F. Supp. 27 (S.D.N.Y. 1996), affd. 109 F.3d 127 (2d Cir. 1997). Because respondent assessed petitioner’s 1990 tax liability after Nov. 5, 1990, the 10-year limitations period also applies to his 1990 tax liability.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011