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participated in a Son-of-BOSS deal from January 1, 1998 through
June 15, 2003. The relevant provision is section 7609(e)(2):
In the absence of the resolution of the
summoned party’s response to the summons, the
running of any period of limitations under
section 6501 * * * with respect to any person
with respect to whose liability the summons
is issued * * * shall be suspended for the
period--
(A) beginning on the date which is
6 months after the service of such
summons, and
(B) ending with the final
resolution of such response.
The IRS served Jenkens & Gilchrist with that summons on June
18, 2003, and it was not quickly resolved. The tolling of
section 6501's three-year limit began on December 18, 2003, six
months after the service of the summons, and continued until May
17, 2004, when information was provided in response to the
summons. When the tolling began, there were 133 days remaining
on the limitations period; therefore, when the tolling ended,
there were still 133 days remaining and the limitations period
was extended from April 29, 2004--the original date on which the
statute of limitations would have ended--to September 26, 2004.
As the deficiency notice and the FPAA were issued on September
22, 2004, we conclude that there is no statute-of-limitations
problem for the Commissioner based on section 6501 alone.
Note that the key step in this argument is the implicit
assumption that the Commissioner has the power to adjust 1999
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Last modified: November 10, 2007