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Specialties, L.P. v. Commissioner, 114 T.C. 533, 537 (2000),
appeal dismissed and remanded 249 F.3d 175 (3d Cir. 2001):
Section 6501(a) provides a general period of
limitations for assessing and collecting any tax
imposed by the Code. Section 6501(a) defines the
period in relation to the filing of the return of the
person liable for tax; in this case petitioner rather
than the partnership. Section 6229(a) sets forth a
minimum period for assessing any income tax with
respect to any person that is attributable to any
partnership item or affected item. This minimum period
is defined in relation to the filing of the partnership
return. This minimum period can be greater than, or
less than, the period of limitations in section 6501.
Respondent’s reliance on Rhone-Poulenc is misplaced. In
Rhone-Poulenc, at the time the FPAA was issued, the period for
assessing taxes under section 6501 was still open under section
6501(e) (6-year period in cases involving substantial omissions
of gross income).5 Respondent did not issue an FPAA to UK Lotto
for the 1995 taxable year. Instead, respondent accepted the 1995
partnership tax return with no changes. The period for assessing
any partnership item relating to UK Lotto expired on December 31,
2003, the ending date of the last Form 872-P executed between the
tax matters partner for UK Lotto and respondent. The period for
assessing taxes due from petitioners is open, if at all, solely
5Both the Court of Federal Claims and the U.S. Court of
Appeals for the District of Columbia Circuit have agreed with the
Court’s analysis in Rhone-Poulenc Surfactants & Specialties, L.P.
v. Commissioner, 114 T.C. 533, 537 (2000), appeal dismissed and
remanded 249 F.3d 175 (3d Cir. 2001). See Andantech L.L.C. v.
Commissioner, 331 F.3d 972 (D.C. Cir. 2003), affg. in part and
remanding T.C. Memo. 2002-97; Schumacher Trading Partners II v.
United States, Fed. Cl. (July 31, 2006).
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