128 T.C. No. 17
UNITED STATES TAX COURT
BAKERSFIELD ENERGY PARTNERS, LP, ROBERT SHORE, STEVEN FISHER,
GREGORY MILES AND SCOTT MCMILLAN, PARTNERS OTHER THAN THE TAX
MATTERS PARTNER, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 4204-06. Filed June 14, 2007.
A Notice of Final Partnership Administrative
Adjustment (FPAA) for the year 1998 was sent in 2005,
determining that the basis of property sold by P was
overstated. R contends that the overstatement of basis
is an omission of gross income and that, therefore, the
6-year period of limitations in sec. 6501(e)(1)(A),
I.R.C., applies. There are no other exceptions to the
normal 3-year period of limitations applicable to the
individual partners.
Held: The overstatement of basis is not an
omission of gross income for purposes of sec.
6501(e)(1)(A), I.R.C. Colony, Inc. v. Commissioner,
357 U.S. 28 (1958), followed.
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