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determination that the early ICMA Retirement Trust distribution
was income. Petitioner referred to a number of Internal Revenue
Code sections and legal conclusions during his testimony, but his
primary contention is that respondent is barred by the statute of
limitations on assessment for his 1998 tax year.
Generally, the Commissioner is allowed 3 years after a
return is filed to issue a notice of deficiency. Sec. 6501.
Petitioner contends that because respondent issued the notice of
deficiency in 2003, the 3-year period of limitations bars
assessment and collection against him. The Court disagrees with
this argument. The filing of petitioner’s Federal income tax
return is the event that commences the 3-year period of
limitations. Sec. 6501(a). Petitioner filed his 1998 Federal
income tax return on November 19, 2003. Respondent issued the
notice of deficiency to petitioner for the 1998 tax year on
December 17, 2003.5 That is well within the period of
4(...continued)
places the burden on the taxpayer to show that the determinations
are incorrect. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503
U.S. 79, 84 (1992); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Sec. 7491(a), under certain circumstances, alters the burden of
proof with respect to a taxpayer’s liability for taxes in court
proceedings arising in connection with examinations commencing
after July 22, 1998. Although this examination commenced after
July 22, 1998, the issue does not fall within the scope of sec.
7491(a). Petitioner, therefore, bears the burden of proof.
5The fact that respondent based his notice of deficiency on
a substitute for return that was filed on Sept. 5, 2003, is
immaterial. Had petitioner never filed his 1998 Federal tax
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