New York Football Giants, Inc. - Page 12




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          fiscal years 1996 and 1997.6  Accordingly, we will grant                    
          respondent’s motion to dismiss and to strike as to petitioner’s             
          fiscal years 1996 and 1997.                                                 
               In view of the foregoing,                                              
                                                  An appropriate order will           
                                             be issued.                               


















               6  Petitioner did not agree to extend the time to assess tax           
          for fiscal year 1997; however, the tax matters person agreed on             
          behalf of the shareholders to extend the time to assess tax for             
          that year.  Petitioner filed a motion to dismiss for lack of                
          jurisdiction as to fiscal year 1997, in which petitioner contends           
          that respondent is barred from assessing a deficiency for fiscal            
          year 1997 because respondent mailed the notice of deficiency more           
          than 3 years after petitioner filed its fiscal year 1997 return.            
          Petitioner’s motion follows from petitioner’s contention that the           
          built-in gains tax is not a subchapter S item, and, thus,                   
          respondent is barred from assessing a deficiency for fiscal year            
          1997 because the 3-year period for assessment of tax provided by            
          sec. 6501 has expired.  Based on our holding that the built-in              
          gains tax is a subchapter S item, the notice of deficiency for              
          fiscal years 1996 and 1997 is invalid.  A notice of S corporation           
          administrative adjustment (FSAA) should have been issued for                
          those years.                                                                




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