2014 U.S. Tax Ct. LEXIS 46
Tax Ct.2014Background
- Petitioner Law Office of John H. Eggertsen P.C. is an S corporation with an ESOP that owned 100% of its stock in 2005.
- ESOP filed Form 5500 for 2005 and amended 2005 annual returns; those returns listed assets and participants.
- Respondent did not accept petitioner’s Form 5330 as the return for 2005 excise tax purposes and filed a substitute Form 5330.
- Eggertsen I held that I.R.C. §4979A(a) excise tax applies for 2005 and that the statute of limitations issue favored respondent under §4979A(e)(2)(D).
- Respondent moved for reconsideration and vacatur, which the Tax Court granted, reconsidering whether §6501 governs the limitations period.
- Supplemental Opinion reconsiders whether §6501, not §4979A(e)(2)(D), controls the limitations issue and whether the tax may be assessed at any time.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which statute governs the limitations period between §6501 and §4979A(e)(2)(D). | Eggertsen I favored §4979A(e)(2)(D). | §6501 governs unless §4979A provides a specific rule. | §6501 controls the limitations issue. |
| Whether §4979A(e)(2)(D) simply extends §6501 limitations rather than replaces it. | Eggertsen I treated §4979A(e)(2)(D) as controlling the period. | §4979A(e)(2)(D) is a special rule that may extend §6501. | §4979A(e)(2)(D) serves only to extend the §6501 period under specified circumstances. |
| Whether the 2005 §4979A(a) excise tax may be assessed at any time. | If no qualifying return under §6501(a) exists, assessment at any time is allowed. | If a qualifying return exists, assessment is limited to the applicable period. | The excise tax may be assessed at any time under §6501(c)(3). |
Key Cases Cited
- Beard v. Commissioner, 82 T.C. 766 (1984) (test for return for §6501 purposes; filing required to start SOL)
- Beal v. Commissioner, 13 B.T.A. 677 (1928) (statutory conflict resolution guidance)
- Estate of Morgens v. Commissioner, 133 T.C. 402 (2009) (statutory conflicts; later statute may prevail)
- Rhone-Poulenc Surfactants & Specialties, L.P. v. Commissioner, 114 T.C. 533 (2000) (statutory interaction guidance on limitations)