Kligfeld Holdings v. Comm'r
United States Tax Court
In 2004, R sent a notice of deficiency to one of P's partners for his 2000 taxable year. Because the item which R adjusted was an affected item under section 6231(a)(5), I.R.C., R also issued a notice of final partnership administrative adjustment (FPAA) to P for its 1999 taxable year, which was the year in which P claimed the item on its taxes. Both parties agree that the statute of limitations for assessing additional tax on the 1999 taxable year had already expired.
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In 2004, R sent a notice of deficiency to one of P's partners for his 2000 taxable year. Because the item which R adjusted was an affected item under section 6231(a)(5), I.R.C., R also issued a notice of final partnership administrative adjustment (FPAA) to P for its 1999 taxable year, which was the year in which P claimed the item on its taxes. Both parties agree that the statute of limitations for assessing additional tax on the 1999 taxable year had already expired. P argues that if R is barred from assessing additional tax for 1999, he is also barred from issuing an FPAA for 1999. R…
1Opinion of the Court
OPINION
Holmes, Judge:
Marnin Kligfeld contributed a large block of Inktomi Corp. stock to a partnership in 1999. The stock was shuttled from one partnership to another, theoretically gaining a greatly increased basis along the way. Most of this stock was sold in 1999. In 2000, the second partnership distributed the remaining stock with its allegedly increased basis along with the cash proceeds from the 1999 sale. Kligfeld sold the leftover stock and reported the sale on his 2000 joint return.1 The Commissioner challenges the amount of capital gains Kligfeld and Estrin reported on their joint…
2Cases cited8 opinions
- United States v. RainesSupreme Court of the United States · 1960
- Crooks v. HarrelsonSupreme Court of the United States · 1930
- Rothensies v. Electric Storage Battery Co.Supreme Court of the United States · 1946
- Rhone-Poulenc Surfactants & Specialties, L.P. v. CommissionerUnited States Tax Court · 2000
- Andantech L.L.C. v. CommissionerCourt of Appeals for the D.C. Circuit · 2003
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