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The Pleadings
The Petition
Petitioners filed a petition for redetermination on
January 16, 2001. We have struck from the petition all
assignments of error other than petitioners’ assignment relying
on the affirmative defense that the period for assessment of
taxes for 1996 has expired (petitioners’ limitations defense).
Answer and Amendment to Answer
Respondent answered petitioners’ one remaining assignment of
error by denying that he had erred and averring that, because Dr.
Trowbridge’s initial 1996 Form 1040 is not a valid return, the
statute of limitations does not bar the assessment of tax with
respect to Dr. Trowbridge for that year.7
Subsequently, we granted respondent leave to amend his
answer to allege an increased deficiency in Dr. Trowbridge’s 1996
tax attributable to increased gross business receipts for that
year (the portion of Dr. Trowbridge’s 1996 deficiency in excess
of $146,847 is hereafter referred to as the additional 1996
deficiency). Respondent also asserted corresponding increases in
the additions to tax asserted against Dr. Trowbridge under
sections 6651(a)(1) and 6654. Consistent with the protective
notice of deficiency issued to Life Center, respondent asserted
7 Respondent also alleged that he issued his notice of
deficiency to Life Center within the 3-year period of limitations
on assessment applicable to Life Center’s 1996 taxable year.
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