In a dispute involving a Final Partnership Administrative Adjustment issued by the IRS, Court of Federal Claims judgment is reversed where the court erred in holding that the IRS was entitled to the benefit of the six-year statute of limitations under I.R.C. sec. 6501(e)(1)(A), as the alleged overstatement of the basis of the property in question by plaintiff did not constitute an omission from gross income under the statute. Accordingly, the three-year limitations period of the statute controls, and the Final Partnership Administrative Adjustment is untimely, and therefore invalid.
Appeal from the United States Court of Federal Claims.
Decided: July 30, 2009
Before NEWMAN and SCHALL, Circuit Judges, and PATEL, District Judge.
Opinion by SCHALL, Circuit Judge.
Dissenting opinion filed by Circuit Judge NEWMAN
For Defendant: Joan I. Oppenheimer, United States Department of Justice, Washington, Dc.