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“Alternative Minimum Tax”.[7] 3. Please consider that
after I agreed to “Consent to Extend the Time to Assess
Tax”, the IRS response was received 4 months after the
due date of December 31, 2002!
II. Discussion
A. Statute of Limitations
We must first decide whether the statute of limitations bars
the assessment of the deficiencies in issue. In doing so, we
must decide whether the last consent is valid for 1998 and 1999.
If it is valid, then the period for assessment of income tax was
extended and respondent’s notice of deficiency for 1998 and 1999
was timely. If, however, the last consent is invalid, then the
period for assessment of income tax expired before respondent
issued the notice of deficiency.
Generally, an income tax must be assessed within 3 years
after the applicable return is filed. Sec. 6501(a). In this
regard, a return filed before the due date is considered as
having been filed on the date it was due. Sec. 6501(b)(1). This
period may be extended, however, if the taxpayer and the
Commissioner consent in writing, before the expiration of the
limitations period, to extend the 3-year period of limitations.
Sec. 6501(c)(4)(A). The Commissioner and the taxpayer may extend
the period so agreed upon by subsequent agreements in writing
7 We note that respondent did not determine in the notice
of deficiency that petitioner is subject to the alternative
minimum tax. Therefore, we need not address petitioner’s
allegation.
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