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Some of the facts were stipulated, and those facts, with the
annexed exhibits, are so found and are incorporated herein by
reference. At the time the petition was filed, petitioners'
legal residence was Henderson, Nevada.
2(...continued)
on assessment, and that respondent failed to notify them timely
of the partnership-level proceeding. Generally, the Commissioner
is required to assess a tax within 3 years after the taxpayer's
return is filed. Sec. 6501(a). In the case of a tax
attributable to partnership items, however, sec. 6229 sets forth
special rules to extend the period of limitations prescribed by
sec. 6501. Sec. 6501(o). Sec. 6229(a) provides that the period
for assessing income tax attributable to a partnership item (or
affected item, which includes the additions to tax determined by
respondent in the instant case, sec. 301.6231(a)(5)-1T(d),
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6790 (Mar. 5,
1987)) for a partnership taxable year shall not expire before 3
years after the later of (1) the date the partnership return for
such year was filed or (2) the last day for filing such return
for such year (without regard to extensions). Sec. 6229(d)
provides that the mailing of a notice of final partnership
administrative adjustment suspends the running of the 3-year
limitations period for the period during which an action may be
brought under sec. 6226 (and, if an action is brought, until the
decision of the court has become final) and for 1 year thereafter.
The record in this case reflects, and the Court so finds,
that a notice of final partnership administrative adjustment for
Blythe II, for each year at issue, was mailed to the tax matters
partner of Blythe II on Feb. 16, 1989, and that copies of the
same were mailed to petitioners' last known address on Mar. 8,
1989. The stipulation of facts includes a copy of the decision
entered regarding Blythe II, which is dated July 1, 1998. Under
sec. 6229(d)(2), the running of the 3-year period of limitations
for assessing a deficiency attributable to a 1982 or 1983
partnership item was suspended for 1 year after the date the
decision entered on July 1, 1998, became final. The decision
became final no earlier than Sept. 29, 1998 (90 days after it was
entered). Secs. 7481(a)(1), 7483. The notices of deficiency in
this proceeding were issued to petitioners on May 28, 1999;
consequently, the notices of deficiency relating to the affected
items (the additions to tax) were issued timely.
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