§275 — Certain taxes

But we disagree with the Commissioner that section 261 has the broadening effect he claims it does.

at 789-790): This Court and the circuit courts of appeals have specifically held that for the purposes of applying section 275(c) of the Internal Revenue Code, consideration may only be given to the return of the particular taxpayer and that the return of another taxpayer may not be considered.

The revenue ruling held that, for purposes ofsection 275(c) ofthe Internal Revenue Code of 1939 (the predecessor ofsection 6501(e)), a proportionate share ofgross partnership income is imputed to an individual partner in determining his reportable gross income for purposes ofdetermining whether there was an omission of25.% ofgross income.

275 prohibits a taxpayer from deducting certain types of taxes, sec. 275 does not address cigarette stamp taxes. In arguing that cigarette tax stamps are selling expenses, petitioner relies solely on Rev. Rul. 79-196, 1979-1 C.B. 181. Rev. Rul. 79-196, 1979-1 C.B. at 182, states that the cost of goods sold does not include proceeds attributabl

argues that, Colony' s interpretation of section 275(c ) of the 1934 Revenue Act is not binding because its successor statute, section 6501 ( e)(1)(A), is materially different (the materiality argument) .

However, section 275 does not apply to disallow a deduction for taxes to the extent such a deduction is allowable under section 164(f), which provides that -4 8 - one-half of the self-employment tax for the taxable year is allowed as a deduction.

In Colony, the Supreme Court held that understating gross income on an income tax return by misstating cost items or basis is not an “omi[ssion] from gross income [of] an amount properly includible therein” for the purposes of extending the period of limitations under section 275(c) of the 1939 Code (later reenacted as section 6501(e)(1)(A) in the 1954 Code).

ud and failure-to-file rule be expanded to apply also to.substantial understatements of gross income. The Ways and Means Committee report (H. Rept. 73-704, pp. 34, 35 (1934), 1939-1 C.B. (Part 2) 554, 580) explains these changes 'as follows: - 18 - Section 275. Period for assessment and collection. The present law limits the time for assessments to 2 years from the date the return is filed. Experience has shown that this period is too short in a substantial number of large cases, resulting often

t the fraud and failure-to-file rule be expanded to apply also to substantial understatements of gross income. The Ways and Means Committee report (H. Rept. 73-704, at 34, 35 (1934), 1939-1 C.B. (Part 2) 554, 580) explains these changes as follows: Section 275. Period for assessment and collection. The present law limits the time for assessments to 2 years from the date the return is filed. Experience has shown that this period is too short in a substantial number of large cases, resulting often

In Colony the Supreme Court held that understating gross income on an income tax return by misstating costs items or basis is not an “omi[ssion] from gross income [of] an amount properly includible therein” for the purposes of extending the period of limitations under section 275(c) of the 1939 Code (later reenacted as section 6501(e)(1)(A) in the 1954 Code).

275 prohibits a taxpayer from deducting certain types oftaxes, sec. 275 does not address cigarette stamp taxes. - 31 - selling expense, see LOAD, Inc. v. Commissioner, T.C. Memo. 2007-51, aff'd, 559 F.3d 909 (9th Cir. 2009). In LOAD, the taxpayer argued that certain State taxes were marketing, selling, or distribution expenses excepted from s

28, 37 ( 1958), the Supreme Court , interpreting section 275 (c), Z .R.C .

79, 81 (1953) - 10 - (interpreting similar language in section 275(c), the predecessor to section 6501(e)).

79, 81 (1953) - 10 - (interpreting similar language in section 275(c), the predecessor to section 6501(e)).

A Federal income tax liability that “accrued during the taxable year” is allowed as a deduction from the tax base for the accumulated earnings tax. See sec. 535(b)(1). 10 Our J.H. Rutter Rex Manufacturing Co. v. Commissioner opinion (T.C. Memo. 1987-296) (Rutter Rex) was reversed during 1988 (Rutter Rex, 853 F.2d 1275 (5th Cir. 1988). We

As petitioners suggest, respondent might have cited other provisions of Delaware’s General Corporation Law, including section 251, which deals with the merger of two or more entities into one corporation following a resolution of the board of directors and upon a vote of a majority of the outstanding voting stock, and section 275, which deals with the dissolution of a corporation following a resolution of the board of directors upon a vote of a majority of the outstanding voting stock.

* * * * * * * Whenever a taxpayer sells property used as his principal residence at a gain the statutory period prescribed in section 275 [a predecessor to section 6501] of the Code for the assessment of any deficiency attributable to any part of such gain will not expire prior to the expiration of 3 years from the date the Secretary is notified by the taxpayer, in accordance with such regulations as the Secretary may prescribe, of the cost of purchasing the new residence

As petitioners suggest, respondent might have cited other provisions of Delaware’s General Corporation Law, including section 251, which deals with the merger of two or more entities into one corporation following a resolution of the board of directors and upon a vote of a majority of the outstanding voting stock, and section 275, which deals with the dissolution of a corporation following a resolution of the board of directors upon a vote of a majority of the outstanding voting stock.

28, 36 (1958) (an income tax case), the Supreme Court, interpreting the meaning of this statutory language, said: We think that in enacting section 275(c) [the predecessor of section 6501] Congress manifested no broader purpose than to give the Commissioner an additional 2 [now 3] years to investigate tax returns in cases where, because of a taxpayer's omission to report some taxable item, the Commissioner is at a special disadvantage in detecting errors.