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the period of limitations set forth therein applies to “the
assessment of any deficiency attributable to any part of such
gain”.
Consistent with section 1034(j)(1), subsection (j)(2)
provides that the period of limitations shall apply
“notwithstanding the provisions of any other law or rule of law
which would otherwise prevent such assessment.” As we see it, if
(as petitioners maintain) Congress intended for the general
3-year period of limitations under section 6501(a) to apply to
assessments attributable to the Commissioner’s determination that
a property sold by a taxpayer was not his principal residence,
Congress would have qualified the language of section 1034(j) so
that it did not preempt the more general rules of section
6501(a). In the absence of such qualifying language, our holding
that the period of limitations under section 1034(j) governs the
assessment of the deficiency in this case conforms with the basic
principle of statutory construction that a specific statute
controls over a general provision. See, e.g., Bulova Watch Co.
v. United States, 365 U.S. 753, 758 (1961).
Our holding also comports with the legislative history of
section 1034. H. Rept. 586, 82d Cong., 1st Sess. 108-114 (1951),
1951-2 C.B. 357, 406, 435-439, contains a section titled
“Detailed Discussion Of The Technical Provisions Of The Bill”,
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