Kligfeld Holdings, Kligfeld Corporation, Tax Matters Partner - Page 17

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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                        
                              (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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