Bakersfield Energy Partners, LP v. Comm'r
United States Tax Court
A Notice of Final Partnership Administrative Adjustment (FPAA) for the year 1998 was sent in 2005, determining that the basis of property sold by P was overstated. R contends that the overstatement of basis is an omission of gross income and that, therefore, the 6-year period of limitations in sec. 6501(e)(1)(A), I.R.C., applies. There are no other exceptions to the normal 3-year period of limitations applicable to the individual partners.
Read the full summary
A Notice of Final Partnership Administrative Adjustment (FPAA) for the year 1998 was sent in 2005, determining that the basis of property sold by P was overstated. R contends that the overstatement of basis is an omission of gross income and that, therefore, the 6-year period of limitations in sec. 6501(e)(1)(A), I.R.C., applies. There are no other exceptions to the normal 3-year period of limitations applicable to the individual partners. Held: The overstatement of basis is not an omission of gross income for purposes of sec. 6501(e)(1)(A), I.R.C.Colony, Inc. v. Commissioner, 357 U.S. 28, 78…
1Opinion of the Court
OPINION
Cohen, Judge:
In a notice of final partnership administrative adjustment (FPAA) sent October 4, 2005, respondent determined that Bakersfield Energy Partners, L.P. (BEP), had overstated its basis in certain gas reserves sold during the taxable year 1998, thus causing an understatement of partnership income by more than 25 percent of the amount stated in the return. The issue for decision is whether, under those circumstances, the overstatement of basis constitutes an omission of income giving rise to an extended 6-year period of limitations. This issue has been presented by petitioners’…
2Cases cited7 opinions
- Colony, Inc. v. CommissionerSupreme Court of the United States · 1958
- DeGanay v. LedererSupreme Court of the United States · 1919
- Rhone-Poulenc Surfactants & Specialties, L.P. v. CommissionerUnited States Tax Court · 2000
- Colony, Inc. v. CommissionerUnited States Tax Court · 1956
- The Colony, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1957
2 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Bakersfield Energy Partners, LP v. CommissionerCourt of Appeals for the Ninth Circuit · 2009
- Intermountain Insurance Service of Vail, Ltd. Liability Co. v. CommissionerUnited States Tax Court · 2010
- Salman Ranch Ltd. v. United StatesCourt of Appeals for the Federal Circuit · 2009
- Salman Ranch, Ltd. v. CommissionerCourt of Appeals for the Tenth Circuit · 2011
- Intermountain Insurance Service of Vail v. Commissioner of Internal Revenue ServiceCourt of Appeals for the D.C. Circuit · 2011
35 more not listed; retrieve them via the Exa API.