128 T.C. No. 16
UNITED STATES TAX COURT
KLIGFELD HOLDINGS, KLIGFELD CORPORATION, Tax Matters Partner,
Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 21330-04. Filed May 30, 2007.
In 2004, R sent a notice of deficiency to one of
P’s partners for his 2000 taxable year. Because the
item which R adjusted was an affected item under
section 6231(a)(5), I.R.C., R also issued a notice of
final partnership administrative adjustment (FPAA) to P
for its 1999 taxable year, which was the year in which
P claimed the item on its taxes.
Both parties agree that the statute of limitations
for assessing additional tax on the 1999 taxable year
had already expired. P argues that if R is barred from
assessing additional tax for 1999, he is also barred
from issuing an FPAA for 1999. R claims that an FPAA
can be issued at any time as long as at least one
partner can still be assessed additional tax in
relation to either an affected item or a partnership
item (as defined by section 6331(a)(3), I.R.C.). P
moved for summary judgment.
Held: Sections 6501(a) and 6229(a), I.R.C., do
not preclude R from issuing an FPAA for P’s 1999
taxable year.
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Last modified: November 10, 2007