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If a third party contests a summons and the summons dispute
is not resolved within 6 months, the period of limitations is
suspended from the date which is 6 months after the service of
the summons until the final resolution of the matter. Sec.
7609(e)(2).
1. Suspension of the Limitation on the Time To Assess Tax
by Section 7609(e)(1)
On October 4, 1990, respondent issued nine third-party
administrative summonses concerning TCM’s income tax liability
for 1987. TCM filed the Alabama petition to quash on October 10,
12(...continued)
(1) Subsection (b) action.--If any person takes
any action as provided in subsection (b) and such
person is the person with respect to whose liability
the summons is issued (or is the agent, nominee, or
other person acting under the direction or control of
such person), then the running of any period of
limitations under section 6501 (relating to the
assessment and collection of tax) or under section 6531
(relating to criminal prosecutions) with respect to
such person shall be suspended for the period during
which a proceeding, and appeals therein, with respect
to the enforcement of such summons is pending.
(2) Suspension after 6 months of service of
summons.–-In the absence of the resolution of the
summoned party’s response to the summons, the running
of any period of limitations under section 6501 or
under section 6531 with respect to any person with
respect to whose liability the summons is issued (other
than a person taking action as provided in subsection
(b)) shall be suspended for the period--
(A) beginning on the date which is 6
months after the service of such summons, and
(B) ending with the final resolution of
such response.
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