- 16 -
that petitioner’s conclusion follows from his premise,
for the taxation of C corporations and their
stockholders is so markedly different from that of S
corporations. [Id. at 532 n.11.]
The rationale expressed in the Bufferd footnote was relied
upon in a memorandum opinion of this Court holding that the
expiration of a C corporation’s assessment period did not bar the
Commissioner from determining a deficiency based on a deemed
capital gain distribution to the shareholder. Manning v.
Commissioner, T.C. Memo. 1993-127. In addition, the Court in
Manning noted that Bufferd relied on Commissioner v. Munter, 331
U.S. 210 (1947), and Lardas v. Commissioner, 99 T.C. 490 (1992).
The Manning opinion did not provide any rationale in addition to
that contained in the cited cases.
Although prospective and not in effect for the tax year
under consideration (1992), the Taxpayer Relief Act of 1997, Pub.
L. 105-34, sec. 1284, 111 Stat. 1038, added the following
language to section 6501(a):
For purposes of this chapter, the term
“return” means the return required to be
filed by the taxpayer (and does not include a
return of any person from whom the taxpayer
has received an item of income, gain, loss,
deduction, or credit).
That legislation was enacted after Bufferd, and was specifically
intended to clarify this issue with respect to S corporations.
H. Rept. 105-148, at 609-610 (1997), 1997-4 C.B. (Vol.1) 323,
931-932; S. Rept. 105-33, at 277-278 (1997), 1997-4 C.B. (Vol. 2)
1067, 1357-1358; H. Conf. Rept. 105-220, at 702-703 (1997), 1997-
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011