Ridge L. Harlan and Marjory C. Harlan - Page 2




                                        - 2 -                                         
               adjuncts to, and parts of, the 1st-tier partnerships’                  
               information returns, which in turn are treated as adjuncts             
               to, and parts of, petitioner’s tax returns.                            


               Craig A. Etter, Timothy J. Jessell, and Michael I. Sanders,            
          for petitioners.                                                            
               Carol E. Schultze, for respondent.                                     


                                       OPINION                                        
               CHABOT, Judge:  This matter is before us for determination             
          as to whether, in applying the 6-year period of limitations (sec.           
          6501(e)(1)(A))1, when a petitioner’s tax return reflects income             
          from a partnership (hereinafter sometimes referred to as the 1st-           
          tier partnership) that is itself a partner in another partnership           
          (hereinafter sometimes referred to as the 2d-tier partnership),             
          the statutory phrase “gross income stated in the return” (the               
          denominator in the 25-percent test) requires a tracing of the               
          flow of gross income from not only the 1st-tier partnership’s               
          information return but also from the 2d-tier partnership’s                  
          information return in order to determine petitioners’ appropriate           





               1Unless otherwise indicated, all subtitle, chapter,                    
          subchapter, and section references are to subtitles, chapters,              
          subchapters, and sections of the Internal Revenue Code of 1954 as           
          in effect for 1985; except that references to section 6501 are to           
          section 6501 of the Internal Revenue Code of 1986 as in effect              
          for notices of deficiency mailed in 1992.                                   




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