- 25 -
mistakes, however, have deprived petitioner of his right to
notice and a fair hearing, either at the administrative level or
before this Court.
The Assessment of Taxes and Penalties for 1995 Was Valid
Respondent concedes that petitioner did not receive a copy
of the notice of deficiency for 1995 and that the underlying
liability for 1995 is therefore properly considered in this
proceeding. Whether the limitations period has expired
constitutes a challenge to the underlying tax liability. Boyd v.
Commissioner, 117 T.C. 127, 130 (2001).
Petitioner contends that the statute of limitations bars
assessment of his liabilities for 1995 and that the additions to
tax should be abated because of prior administrative action. He
has not presented any evidence of error in the determination of
taxable income or the calculations of tax liability. Section
7491(a) does not apply because the examination of petitioner’s
liabilities in issue commenced before the effective date of that
section.
The Commissioner has 3 years from the time a return is filed
to issue a notice of deficiency with respect to income tax. See
secs. 6212(a), 6213(a), 6501(a). Section 7502(a)(1) provides
that, in certain circumstances, a timely mailed return will be
treated as though it were timely filed. Section 7502(a)(2)
provides that the timely mailing/timely filing rule applies if
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011