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conditioned on the settlement reached. Petitioner argues that if
the settlement did not occur, the limitations period for
assessment expired on June 30, 2002, and section 6501(a) bars the
assertion of the deficiencies.
Respondent contends that the Form 872-A, filed by petitioner
and accepted by respondent, was unrestricted and extended the
period of limitations for assessment, and that, as a consequence,
the notice of deficiency was timely.
Form 872-A, in general, is an open-ended extension of the
period of limitations for assessment of taxes which, by its
terms, provides that it can be terminated by either party’s
mailing to the other a Form 872-T, Notice of Termination of
Special Consent to Extend Time to Assess Tax. No Form 872-T to
terminate the special consent was mailed by either party in the
instant case. Form 872-A also provides that the mailing of a
notice of deficiency terminates the extension of time to assess
as of 60 days after the period during which the making of an
assessment was prohibited because of the deficiency proceedings.
An agreement to extend the period of limitations for
assessment and collection is not a contract but a waiver of a
defense by the taxpayer. Stange v. United States, 282 U.S. 270,
276 (1931); Mecom v. Commissioner, 101 T.C. 374, 384 (1993),
affd. without published opinion 40 F.3d 385 (5th Cir. 1994);
Smith v. Commissioner, T.C. Memo. 1989-87. Nevertheless,
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