Winston O. and Paulet P. Smith - Page 6

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                                       OPINION                                        
               Petitioners contend that respondent erred in not considering           
          their claim to additional deductions relating to their 1982 tax             
          assessment.  Petitioners, however, received a statutory notice of           
          deficiency relating to 1982 and, thus, are precluded from raising           
          their additional deduction claim in this proceeding.  Sec.                  
          6330(c)(2)(B); see Goza v. Commissioner, 114 T.C. 176 (2000).               
               Petitioners further contend that respondent may not collect            
          petitioners’ 1982 and 1983 tax liabilities because the period for           
          collection, pursuant to section 6502, expired.  On December 8,              
          1986, respondent timely assessed petitioners’ 1982 tax liability.           
          The collection period would have expired on December 8, 1996, had           
          there been no actions tolling the running of the period.                    
          Petitioners’ 1992 and 1993 bankruptcy petitions, however,                   
          extended the expiration date until at least December 7, 1998, the           
          date petitioners executed Form 900.  See sec. 6503(h).  Form 900            
          further extended the collection period to December 31, 2004.                
          Thus, the collection period relating to petitioners’ 1982 tax               
          liabilities had not expired as of the date of petitioners’                  
          request for a section 6330 hearing (i.e., July 16, 2001) and is             
          further extended, pursuant to section 6330(e)(1), during the                
          hearing and while the appeals are pending.  Similarly, the                  
          collection period relating to petitioners’ 1983 tax liabilities             
          has not expired.                                                            






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