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section 6662(b) and (d).6
OPINION
I. Whether the Period for Assessment Has Expired
A. Introduction
Respondent determined that the Robinsons had additional
income attributable to constructive dividends originating in
transactions of a separate taxable corporate entity (Career).7
Petitioners argue that Career’s period for assessment should
govern whether respondent may make a timely constructive dividend
adjustment. Petitioners contend that respondent is therefore
barred from determining that the Robinsons had a $39,824
constructive dividend for their 1992 tax year because Career’s
period for assessment had expired for its corresponding corporate
fiscal tax year. Respondent contends that the period for
assessment is controlled by the period for assessment determined
with regard to the return of the taxpayer under examination and
not with regard to the return of the entity from which the
adjustment may originate.
Generally, the Commissioner’s authority to determine income
6 Except for the accuracy-related penalties, the adjustments
for these corporate entities have been resolved by agreement of
the parties.
7 Respondent determined that certain of Career’s claimed
expenses were expended for the Robinsons’ nondeductible personal
expenses and constituted constructive dividends to the Robinsons.
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Last modified: May 25, 2011