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Mr. Arberg and are ordinary in nature. Furthermore, the record
indicates and respondent states that any opportunity to assess
additional taxes for 1999 based on this changed position would
have expired, and petitioners have at no time alleged to the
contrary.
The general statue of limitations on assessment pursuant to
section 6501(a) is 3 years from the date the return is filed.
The statutory period for a 1999 return would therefore typically
terminate in 2003. To the extent it could be argued that
petitioners’ change in position was timely disclosed to the IRS,
the Court would reject any such suggestion in the unique
circumstances of this case. Although petitioners filed their
2000 return in April of 2001 and provided their revised 2000
return in March of 2002, Mr. Arberg on July 3, 2002, signed a
Form 5564, Notice of Deficiency Waiver, with respect to 1999.
The last documentary submission reflected by the record as having
been given to the IRS, prior to expiration of the period of
limitations for 1999, regarding petitioners’ 1999 and 2000
reporting of the E Trade account would thus seem to reaffirm the
original 1999 reporting of the account as other than
Mr. Arberg’s.
Additionally, as of the time motions to compel were filed in
this case in December of 2006, respondent represented that
petitioners still had not provided documentation of the transfers
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