-2-
amended return. R rejected those arguments in a notice
of determination issued to Ps sustaining the proposed
levy. R determined that the applicable period of
limitations is the 6-year period under sec.
6501(e)(1)(A), I.R.C., and that the assessment was
timely because the amended return was filed 2 days
before the expiration of the 6-year period. R argues
that the 6-year period applies because, R asserts, the
reference to “gross income stated in the return” in
sec. 6501(e)(1)(A), I.R.C., does not include any of the
income of the partnerships given that Ps neither
actively nor materially participated in the trade or
business of any of those partnerships.
Held: The 6-year period of limitations in sec.
6501(e)(1)(A), I.R.C., is inapplicable, and the
assessment made on Nov. 6, 1997, was untimely. Ps’
“gross income stated in the return” is determined by
reference to the information returns of the
partnerships.
Steven Toscher, Stuart A. Simon, and Bruce I. Hochman, for
petitioners.
Daniel M. Whitley and Irene S. Carroll, for respondent.
OPINION
LARO, Judge: Petitioners petitioned the Court under section
6330(d), and the parties submitted the case to the Court fully
stipulated. See Rule 122. We decide herein whether respondent
assessed certain amounts against petitioners within the period
allowed by section 6501. We hold respondent did not. Unless
otherwise indicated, section references are to applicable
versions of the Internal Revenue Code. Rule references are to
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