irspro,
Interesting! Duffy said they gave 7 years of documents, 2000-2006. What can we infer from that as far as the statutes of limitations go? That the 3-year limit didn't apply for one of the stated reasons? Is that a reasonable conclusion?
Or that not even the 6-year limit applied, but no records exist before 2000 anymore?
Or is there a different SoL publication for Form 990's and Form990-T's filed in connection with Form 990's?
Exceptions to the Three-Year Rule would have to come from "fraud or omission." If there was any closing, it was the Criminal Division withdrawing rather than the Audit Division closing it on a No Change from what I can deduce, both of which are easily separable. Some of the "Informant" attributions appear to be of an "inside type" and potentially valid until you insert a qualified and morally credible tax preparer. Based on my reputation throughout management, I probably could have surveyed the entire file by stamping is "Survey"; however, I may not have taxed my reputation by just going the "Written Survey" route with a minimum of verbage after an analysis of all the apurtnant tax returns along with the informant's document.
"EXCEPTIONS TO THREE-YEAR RULE
Six-Year Statute
The statutory period for assessment or collection is six years from the date the return is
filed or deemed filed, whichever is later, in cases where there has been a substantial
omission (more than 25 percent) on the return of gross income. See IRC section
6501(e)(1).
Page 11-5 Training 4213-021 (Rev. April 2002)
The six-year statute also applies where there has been an omission of more than 25%
of the excise tax due under Subtitle D (Chapters 41 through 44), unless disclosure of
the item giving rise to the tax was made in a manner that adequately apprises the
Secretary of the existence and nature of the item. See IRC section 6501(e)(3) and
Treas. Reg. section 301.6501(e)-1(c).
Agents should take the most conservative approach and protect the three-year statute,
if possible, even though a six-year statute appears applicable.
This protects the interest of the government in the event it is subsequently
determined that the six-year statute is not applicable.
As such, the agent should secure a consent to extend the statute prior to the
expiration of the three-year statute.
If an agent and his manager determine that the six-year statute can be pursued,
be aware that the burden of proof shifts to the government to support the six-year
statute.
It is suggested that Area Counsel’s written advice regarding the applicability of the sixyear
statute be obtained.
Indefinite Statute
The three and six-year rules do not apply to:
Filing a false or fraudulent return - IRC section 6501(c)(1).
Willfully attempting to evade tax - IRC section 6501(c)(2).
Failing to file a return - IRC section 6501(c)(3).
In these instances, the tax may be assessed or collected at any time."
Your allegation of the necessity of a Form 990-T in addition to Form 990 is questionable as the terms of all the contracts between all the parties is not known or whether there is an industry practice on which one could depend to make any assumption. I can believe that all the related parties to all the contracts reported in accordance with an acceptable industry practice. I would have to research a "deemed filed" matter if adequate disclosure of UBI is made. Do you really think in an "alleged somewhat controlled environment" as may exist here, that the authors intended that the net profit of the sum total of the transactions be stripped as royalties, in substance if not in form? That being the case, your concern for the filing of Form-990T may be moot if the authors reported the profit net of "all costs." Hopefully, the IRS is networking their system. A broad estimate of 9 months give a potential of 1 1/2 man years is foolishnss for a No Change. You can take that to the bank.
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Author
Topic: Approved SDA Media Outlet Publishes an Article about the IRS Investigation (Read 175035 times)
