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subchapter S items of KRP. These consents extended the periods
of assessment for 1994 and 1995 to June 30, 2000. Additionally,
the IRS and KRP also entered into a consent on Form 872, Consent
to Extend the Time to Assess Tax, to extend the time to assess
any Federal income tax due on any return made by KRP. This
consent extended the period of assessment for 1995 to June 30,
2000.
On April 24, 2000, the IRS sent KRP a notice of final S
corporation administrative adjustment (FSAA).3 The IRS did not
issue a statutory notice of deficiency for 1994 or 1995 to KRP.
Discussion
Petitioner moved for partial summary judgment on the issue
of whether KRP is liable for built-in gains tax imposed on KRP
pursuant to section 13744 (built-in gains tax) for 1995.
Rule 121(a) provides that either party may move for summary
judgment upon all or any part of the legal issues in controversy.
Summary judgment is intended to expedite litigation and avoid
3 The S corporation audit and litigation procedures (secs.
6241 through 6245) were repealed, effective for tax years
beginning after Dec. 31, 1996, by the Small Business Job
Protection Act of 1996, Pub. L. 104-188, secs. 1307(c)(1),
1317(a), 110 Stat. 1781, 1787.
4 Sec. 1374 imposes a corporate level tax on the recognized
built-in gains of an S corporation that has converted from C
corporation to S corporation status. N.Y. Football Giants, Inc.
v. Commissioner, 117 T.C. 152, 153 n.2, 155 (2001).
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