Managing the interplay between a partnership and its partners' statutes of limitations.

Tax Adviser, The, January, 2006 by Keenan, John R.; Wilson, Chastity

Managing the statute of limitations (SOL) on assessment can be complicated, particularly for partnerships and partners. The SOL on partnership and partner assessments are found in Secs. 6501(a) and 6229(a). The difficulty is determining which statute applies. A recent court case examined this issue.

In AD Global Fund, LLC, 67 Fed. C1. 657 (2005), op. modified, 11/8/05, the plaintiff filed a motion for summary judgment, asserting that the IRS failed to issue a Notice of Final Partnership Administrative Adjustment (FPAA) within the Sec. 6229(a) limitation period, thereby barring the Service from assessing additional tax on partnership items. The IRS contended that it may assess tax attributable to partnership items within the assessment period set forth in Sec....

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