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by reason of agreements to extend the period for assessing tax
under section 6501(c)(4), which provides that taxpayers and the
Commissioner may extend the time for assessment by agreement.6
Respondent maintains that section 6229(b)(3) does not apply
because it references only partnership items and not affected
items. Respondent’s position therefore is that the parties
validly extended the period of limitations pursuant to section
6501(c)(4) and that section 6229(b)(3) refers only to partnership
items and therefore does not affect the limitations period. For
the reasons stated below, we hold that respondent’s position is
incorrect.
B. Respondent’s Position Ignores the Cross-Reference in
Section 6229(b)(3) to Section 6229(a), Which Includes
Affected Items
Contrary to respondent’s interpretation, “tax attributable
to partnership items” refers to what must be stated in the
agreement in order to extend the period of limitations, not to
the limitations period itself.7 The preceding phrase “the period
described in subsection (a)”, references section 6229(a), which
6The general period of limitations under sec. 6501(a), which
generally provides that tax must be assessed within 3 years after
the return was filed no matter when it was due, has clearly
expired with respect to both the partnership and petitioners
individually as those returns were filed in 1996, and respondent
issued the notice of deficiency in 2005. Respondent has not
argued that section 6501(e) is applicable to this case.
7See Schumacher Trading Partners II v. United States, supra,
for a discussion of the role of sec. 6229(b)(3).
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