Ninth Circuit Affirms Tax Court, Holds FPAA Was Untimely
Beverly Clark Collection LLC et al. v. Commissioner
- Case NameBeverly Clark Collection LLC et al. v. Commissioner
- CourtUnited States Court of Appeals for the Ninth Circuit
- DocketNo. 20-70472
- JudgePer Curiam
- Parallel Citation851 Fed. Appx. 12021-1 U.S. Tax Cas. (CCH) P50,1712021 WL 2581370
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2021-25164
- Tax Analysts Electronic Citation2021 TNTF 121-162021 TPR 26-16
Beverly Clark Collection LLC et al. v. Commissioner
BEVERLY CLARK COLLECTION, LLC,
Nelson Clark, Tax Matters Partner
Petitioner-Appellee,
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent-Appellant.
NOT FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
On Petition for Review of an Order of the
of the United States Tax Court
Argued and Submitted June 7, 2021
Portland, Oregon
MEMORANDUM*
Before: WARDLAW, HURWITZ, Circuit Judges, and BOLTON,** District Judge.
The Commissioner of Internal Revenue appeals the Tax Court's summary judgment in favor of Beverly Clark Collection, LLC (“Petitioner”) on statute-of-limitations grounds. We have jurisdiction under 26 U.S.C. § 7482(a)(1), and we review the Tax Court's grant of summary judgment de novo. Sollberger v. Comm'r, 691 F.3d 1119, 1123 (9th Cir. 2012). We affirm.
The Tax Court properly granted summary judgment because the Commissioner's Final Partnership Administrative Adjustment of Petitioner's Form 1065 for tax year 2000 was issued outside of the applicable three-year limitations period in 26 U.S.C. § 6501(a). A six-year limitations period does not apply because Nelson and Beverly Clarks' partial reporting of gain from the transaction at issue was not an “omi[ssion]” under 26 U.S.C. § 6501(e)(1)(A) (2000). See Colony, Inc. v. Comm'r, 357 U.S. 28, 32 (1958) (defining “omit” in predecessor statute as “[t]o leave out or unmentioned; not to insert, include, or name”); United States v. Home Concrete & Supply, LLC, 566 U.S. 478, 482 (2012) (elaborating that “'omit' limits [§ 6501(e)(1)(A)]'s scope to situations in which specific receipts or accruals of income are left out of the computation of gross income”). We find unpersuasive the Commissioner's attempt to distinguish Colony, Inc. and Home Concrete & Supply, LLC and also his invitation to rely on out-of-circuit authority predating Home Concrete & Supply, LLC.
AFFIRMED.
- Case NameBeverly Clark Collection LLC et al. v. Commissioner
- CourtUnited States Court of Appeals for the Ninth Circuit
- DocketNo. 20-70472
- JudgePer Curiam
- Parallel Citation851 Fed. Appx. 12021-1 U.S. Tax Cas. (CCH) P50,1712021 WL 2581370
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2021-25164
- Tax Analysts Electronic Citation2021 TNTF 121-162021 TPR 26-16