Janet Schoene - Page 6

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          Section 6511(h) permits the tolling of the period of limitations            
          for taxpayers who are “financially disabled”.  Petitioner                   
          maintains that during this period of time she was “financially              
               We are willing to assume (but do not decide) that petitioner           
          would fall within the meaning of “financially disabled.”2                   
          Section 6511(h), however, does “not apply to any claim for credit           
          or refund which * * * is barred by the operation of any law or              
          rule of law * * * as of the date of the enactment of this Act               
          [July 22, 1998].”  RRA 1998, sec. 3202(b), 112 Stat. 741.  As               
          noted, petitioner’s withholding credits were deemed paid on April           
          15, 1995.  See sec. 6513(b)(1).  Petitioner did not file her 1994           
          Federal income tax return before respondent issued a notice of              
          deficiency, and, therefore, as stated above, under section                  
          6512(b)(3) petitioner’s refund claim was barred by operation of             
          law as of April 15, 1997.  See Commissioner v. Lundy, supra at              
          253; see also Hart v. Commissioner, T.C. Memo 1999-186.                     
               Reviewed and adopted as the report of the Small Tax Case               
                                             Decision will be entered                 
                                        under Rule 155.                               

          2   We note that this may be a very tenuous assumption.  During             
          this period, petitioner owned and managed real estate, paid her             
          bills, and applied for unemployment compensation.                           

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