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petitioners from now disputing the amounts of the deficiencies or
the timeliness of the statutory notice in this collection action.
See Newstat v. Commissioner, T.C. Memo. 2004-208.
Period of Limitations on Collection
Petitioners argue that even if the period of limitations on
assessment had not expired when the notice was issued, or the
issue is precluded from dispute here, respondent’s proposed
collection action is outside the period of limitations on
collection.
Section 6502, Collection After Assessment, provides that
where an assessment has been timely made, the tax may be
collected by levy or proceeding that is begun “within 10 years
after the assessment of the tax”. The Forms 4340 show that the
stipulated deficiencies entered by the Court’s decision of
February 7, 1994, were assessed by the IRS 92 days later, on May
10, 1994. After a notice of deficiency is mailed, the running of
the period of limitations on assessment is suspended until the
decision of the Tax Court becomes final, after 90 days without an
appeal, and for 60 days thereafter. Sec. 6503; see also secs.
7481, 7483.1
1Although not specifically framed by petitioners, their
general argument that “the statute of limitations on assessment
had run” could subsume the argument that the assessments after
entry of decision were untimely. As can be seen from the
pertinent dates, the assessments were in fact timely made.
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