Page:United States Statutes at Large Volume 100 Part 3.djvu/953

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2761

Subtitle G—Tax Administration Provisions SEC. 1561. SUSPENSION OF STATUTE OF LIMITATIONS IF THIRD-PARTY RECORDS NOT PRODUCED WITHIN 6 MONTHS AFTER SERVICE OF SUMMONS.

(a) IN GENERAL.—Subsection (e) of section 7609 (relating to special procedures for third-party summonses) is amended to read as follows: "(e) SUSPENSION OF STATUTE OF LIMITATIONS.— "(1) SUBSECTION (b) ACTION.—If any person takes any action

e

as provided in subsection (b) and such person is the person with respect to whose liability the summons is issued (or is the agent, nominee, or other person acting under the direction or control of such person), then the running of any period of limitations under section 6501 (relating to the assessment and collection of tax) or under section 6531 (relating to criminal prosecutions) with respect to such person shall be suspended for the period during which a proceeding, and appeals therein, with respect to the enforcement of such summons is pending. "(2) SUSPENSION AFTER 6 MONTHS OF SERVICE OF SUMMONS.—In

c

a I

the absence of the resolution of the third-party recordkeeper's response to the summons described in subsection (c), the running of any period of limitations under section 6501 or under section 6531 with respect to any person with respect to whose liability the summons is issued other (other than a person taking action as provided in subsection (b)) shall be suspended for the period— "(A) beginning on the date which is 6 months after the service of such summons, and "(B) ending with the final resolution of such response." (b) NOTICE OF SUSPENSION IN THE CASE OF A JOHN DOE SUMMONS.—

Section 7609(i) (relating to duty of third-party recordkeeper) is amended by adding at the end thereof the following new paragraph: "(4) NOTICE OF SUSPENSION OF STATUTE OF LIMITATIONS IN THE CASE OF A JOHN DOE SUMMONS.—In the case of a summons

described in subsection (f) with respect to which any period of limitations has been suspended under subsection (e)(2), the third-party recordkeeper shall provide notice of such suspension to any person described in subsection (f)." (c) EFFECTIVE DATE.—The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 1562. AUTHORITY

TO RESCIND NOTICE OF DEFICIENCY WITH

T A X P A Y E R S CONSENT.

(a) IN GENERAL.—Section 6212 (relating to notice of deficiency) is amended by adding at the end thereof the following new subsection: "(d) AUTHORITY TO RESCIND NOTICE OF DEFICIENCY WITH TAXPAYER'S CONSENT.—The Secretary may, with the consent of the

taxpayer, rescind any notice of deficiency mailed to the taxpayer. Any notice so rescinded shall not be treated as a notice of deficiency for purposes of subsection (c)(1) (relating to further deficiency letters restricted), section 6213(a) (relating to restrictions applicable to deficiencies; petition to Tax Court), and section 6512(a) (relating to limitations in case of petition to Tax Court), and the taxpayer shall have no right to file a petition with the Tax Court based on such notice."

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