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because we have found that petitioner committed fraud for those
years. Sec. 6501(c)(1).
TCM timely filed its 1987 Federal income tax return on March
15, 1988. The 3-year limitation on the time to assess tax for
TCM’s 1987 Federal income taxes normally would have expired on
March 15, 1991. Petitioners argue that the 3-year limitation
bars assessment of tax for TCM for 1987. Respondent argues that
it does not because the time to assess tax was tolled during the
pendency of the summons enforcement proceedings. Sec. 7609(e).
If an administrative summons served on a “third-party
recordkeeper” requires the production of records on the affairs
of another person, sec. 7609(a), that person may stay compliance
with the summons by giving notice in writing to the person
summoned not to comply with the summons, sec. 7609(b). SCB
extended credit to petitioner through the SCB VISA card in 1987
and 1988 and, thus, was a third-party recordkeeper. Sec.
7609(a)(3)(C).
When a taxpayer commences a proceeding to quash a summons in
which he or she is identified, the period of limitations is
suspended during the period that the proceeding and appeals with
respect to the enforcement of the summons are pending. Sec.
7609(e)(1).12
12 Sec. 7609(e) provides in pertinent part as follows:
SEC. 7609(e). Suspension of Statute of Limitations.--
(continued...)
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