- 12 - Section 6501(a) provides: “Except as otherwise provided in this section, the amount of any tax imposed by this title shall be assessed within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed)”. (Emphasis added.) Section 6501(a) thus provides a 3-year period of limitations on the assessment of tax running from the date when a return was filed--it does not provide a period of limitations within which a notice of deficiency must be issued. Because petitioner did not file a return, respondent may issue a notice of deficiency at any time and the period of limitations on assessment remains open indefinitely. See sec. 6501(c)(3). Petitioner’s argument has no merit. C. Petitioner’s Federal Income Tax Deficiency Respondent determined that petitioner had unreported income of $1,138,436 in 1996, and a corresponding Federal income tax deficiency of $459,500. Petitioner asserts that because respondent failed to produce sufficient evidence of petitioner’s receipt of taxable income, the notice of deficiency is not entitled to a presumption of correctness. Therefore, petitioner argues, respondent bears the burden of proof with respect to the unreported income at issue. In making this argument, petitioner ignores his own admission. The Court of Appeals for the Ninth Circuit, to which an appeal of this case would lie, has held that the Commissioner’sPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011