A Tax Court decision holding that the statute of limitations on assessment of a corporation’s taxes had lapsed was reversed and remanded. The petition filed by the corporation’s former shareholders challenging the validity of a deficiency notice sent to them, rather than to the corporation at its last-known address, constituted a deficiency proceeding pursuant to Code Sec. 6503(a)(1) . The shareholders’ petition was filed in response to the notice of the corporation’s tax deficiency, claimed that the deficiency notice was invalid because it was not properly served on the corporation and listed only the corporation’s taxpayer identification number number. Therefore, the limitations period for assessment was suspended while the Tax Court proceedings were pending.
Further, the shareholders’ claim that a petition filed in response to an invalid deficiency notice did not suspend the limitation period was rejected. Code Sec. 6503(a)(1) does not limit suspension of the limitation period to a proceeding filed in response to a valid notice of deficiency. Finally, the shareholder’s argument that the notice was invalid since it improperly named the shareholders individually and not as transferees and it was mailed to an incorrect address instead of the corporation’s last-known address was rejected because the notice requirement was satisfied by mailing a valid second notice of deficiency to the corporation’s last-known address.
Reversing and remanding the Tax Court, 101 TCM 1451, Dec. 58,615(M) , TC Memo. 2011-96.
S.K. Shockley, CA-11, 2012-2 ustc ¶50,453
Other References:
Code Sec. 6503
CCH Reference – 2012FED ¶39,032.16
CCH Reference – 2012FED ¶39,032.24
Code Sec. 6901
CCH Reference – 2012FED ¶40,720.106
Tax Research Consultant
CCH Reference – TRC IRS: 60,252
CCH Reference – TRC IRS: 60,256.10
