River City Ranches #1 Ltd., Jeffry Bergamyer, Tax Matters Partner - Page 32




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                      (c) Special Rule in Case of Fraud, Etc.--                       
                         (1) False return.--If any partner has, with                  
                    the intent to evade tax, signed or participated                   
                    directly or indirectly in the preparation of a                    
                    partnership return which includes a false or                      
                    fraudulent item--                                                 
                              (A) in the case of partners so signing                  
                         or participating in the preparation of the                   
                         return, any tax imposed by subtitle A which                  
                         is attributable to any partnership item (or                  
                         affected item) for the partnership taxable                   
                         year to which the return relates may be                      
                         assessed at any time, and                                    
                              (B) in the case of all other partners,                  
                         subsection (a) shall be applied with respect                 
                         to such return by substituting “6 years” for                 
                         “3 years.”                                                   
               Respondent issued the FPAAs at issue after the normal 3-year           
          periods for assessment had expired.  With regard to these FPAAs,            
          however, Hoyt, as TMP, had executed consents extending the                  
          limitations periods.  The partnerships argue that the extensions            
          are invalid because Hoyt executed them while disabled by                    
          conflicts between his own interests and those of his partners.              
          Respondent argues that the consents were valid and,                         
          alternatively, if the waivers are invalid, the 6-year limitations           
          period under section 6229(c)(1) applies.                                    
               In River City Ranches I, we found that the partnerships did            
          not present evidence sufficient to show that Hoyt executed the              
          consents under disabling conflicts of interest.  We concluded,              
          therefore, that the FPAAs were timely issued.                               








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