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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.
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Last modified: May 25, 2011