Daily Tax Report ®

Longer Time Limit Can’t Apply in Partnership Dispute: Tax Court

Nov. 14, 2019, 9:35 PM

The Tax Court granted a couple a win without a trial in a case concerning partnership gains after holding that the Internal Revenue Service issued a partnership adjustment too late.

The U.S. Court of Appeals for the Ninth Circuit ruled in 2014 that the Tax Court failed to consider an IRS argument for extending the limitations period when it granted a summary judgment motion in favor of the couple—Nelson and Beverly Clark.

The IRS had argued the limitations period for issuing the Notice of Final Partnership Administrative Adjustment was six years, rather than three. It also argued the limitations...

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