Domer L. Ishler - Page 32

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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.                   
               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.                

               12  Sec. 7609(e) provides in pertinent part as follows:                
               SEC. 7609(e). Suspension of Statute of Limitations.--                  

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