DocketNumber: No. 25868-06
Citation Numbers: 2009 T.C. Memo. 195, 98 T.C.M. 144, 2009 Tax Ct. Memo LEXIS 197
Judges: \"Wherry, Robert A., Jr.\"
Filed Date: 9/1/2009
Status: Non-Precedential
Modified Date: 11/21/2020
P moved for summary judgment on the ground that R's partnership item adjustments were made after the general 3-year period of limitations for assessing tax had expired. R argues that an extended 6-year period of limitations applies.
MEMORANDUM OPINION
WHERRY,
Intermountain Insurance Service of Vail, LLC (Intermountain), engaged in a series of transactions -- some of which increased tax basis -- culminating in the sale of business assets on August 1, 1999, for $ 1,918,844. It reported the $ 1,918,844 gross sales price and, after deducting $ 131,544 of allowed or allowable depreciation, claimed a stepped-up $ 2,061,808 basis in the assets, on a Form 4797, Sales of Business Property, attached to its 1999 Form 1065, U.S. Partnership Return of Income. It filed that return on September 15, 2000.
Almost 6 years later, on September 14, 2006, respondent issued a notice of final partnership administrative adjustment (FPAA) with respect to Intermountain's 1999 tax year. Respondent found that some of the transactions Intermountain engaged in were improper and ineffective for Federal income tax purposes and consequently determined that Intermountain had improperly claimed a $ 13 expense, overstated capital contributions by *199 $ 2,197,696, overstated outside partnership basis by $ 2,061,808, and improperly claimed an $ 87,680 loss.
Petitioner challenges the timeliness of the FPAA, arguing that the general 3-year period of limitations had already expired when respondent issued the FPAA. Petitioner further cites
Summary judgment is intended to expedite litigation and avoid unnecessary and expensive trials.
The Code does not provide a period of limitations within which the Commissioner must file an FPAA. See
The general period of limitations for assessing tax is 3 years *201 from the filing of a Federal income tax return.
For the purpose of ruling on petitioner's motion for summary judgment we view the facts in the light most favorable to respondent and assume that the adjustments that respondent made in the FPAA to Intermountain's partnership return are correct. The parties agree that *202 respondent issued the FPAA after the 3 year periods described in
In
The Court of Appeals for the Ninth Circuit affirmed our opinion in
The Court has considered all of respondent's contentions, arguments, requests, and statements. To the extent not discussed herein, we conclude that they are meritless, moot, or irrelevant.
To reflect the foregoing,
1. Unless otherwise indicated, all section references are to the Internal Revenue Code of 1986, as amended and in effect for the tax year at issue (Code), and all Rule references are to the Tax Court Rules of Practice and Procedure.
2. Respondent provides no other reason -- beyond the application of
3. Respondent argues that
4. Under
5. Respondent insists that we should not rely on
Jack E. Golsen and Sylvia H. Golsen v. Commissioner of ... , 445 F.2d 985 ( 1971 )
Curr-Spec Partners, L.P. v. Commissioner , 579 F.3d 391 ( 2009 )
Bakersfield Energy Partners, LP v. Commissioner , 568 F.3d 767 ( 2009 )
Salman Ranch Ltd. v. United States , 573 F.3d 1362 ( 2009 )
Sundstrand Corporation v. Commissioner of Internal Revenue , 17 F.3d 965 ( 1994 )
Colony, Inc. v. Commissioner , 78 S. Ct. 1033 ( 1958 )
Sundstrand Corp. v. Commissioner , 98 T.C. 518 ( 1992 )
Rodriguez De Quijas v. Shearson/American Express, Inc. , 109 S. Ct. 1917 ( 1989 )
Golsen v. Commissioner , 54 T.C. 742 ( 1970 )
Florida Peach Corp. v. Commissioner , 90 T.C. 678 ( 1988 )
Dahlstrom v. Commissioner , 85 T.C. 812 ( 1985 )
Lardas v. Commissioner , 99 T.C. 490 ( 1992 )
Bakersfield Energy Partners, LP v. Comm'r , 128 T.C. 207 ( 2007 )