Kligfeld Holdings, Kligfeld Corporation, Tax Matters Partner - Page 1




                                                                                     








                                   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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