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4 C.B. (Vol. 2) 1457, 2172-2173. Under provisions entitled
“Clarify statute of limitations for items from pass-through
entities”, the legislative history contains the explanation that
the new language is intended to clarify that the return that
starts the running of the statute of limitations for a taxpayer
is the return of that taxpayer and not the return of another
“person” from whom the taxpayer has received an item of income,
gain, loss, deduction or credit. In that regard, section
7701(a)(1) defines “person” to mean and include “an individual, a
trust, estate, partnership, association, company or corporation.”
D. Petitioners’ Arguments
Petitioners, in addition to arguing that the Bufferd v.
Commissioner, supra, does not apply to situations involving C
corporations, also argue that constructive dividends are
analogous to section 6672 responsible person penalties. Under
section 6672, assessments are generally to be made within 3 years
of the filing of the return giving rise to the tax liability
(entity’s return).
We have held (in Manning v. Commissioner, supra) and hold
here that the principle expressed in Bufferd v. Commissioner,
supra, is not limited to S corporations or other flowthrough
entities. We recognize that section 6672 cases hold that the
assessment of responsible person penalties must be made within
3 years of the filing of the return giving rise to the
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