[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6503(a)-1]

[Page 375-376]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Limitations
 
Sec. 301.6503(a)-1  Suspension of running of period of limitation; 
issuance of statutory notice of deficiency.

    (a) General rule. (1) Upon the mailing of a notice of deficiency for 
income, estate, gift, chapter 41, 42, 43, or 44 tax under the provisions 
of section 6212, the period of limitation on assessment and collection 
of any deficiency is suspended for 90 days after the mailing of a notice 
of such deficiency if the notice of deficiency is addressed to a person 
within the States of the Union and the District of Columbia, or 150 days 
if such notice of deficiency is addressed to a person outside the States 
of the Union and the District of Columbia (not counting Saturday, 
Sunday, or a legal holiday in the District of Columbia as the 90th or 
150th day), plus an additional 60 days thereafter in either case. If a 
proceeding in respect of the deficiency is placed on the docket of the 
Tax Court, the period of limitation is suspended until the decision of 
the Tax Court becomes final, and for an additional 60 days thereafter. 
If a notice of deficiency is mailed to a taxpayer

[[Page 376]]

within the period of limitation and the taxpayer does not appeal 
therefrom to the Tax Court, the notice of deficiency so given does not 
suspend the running of the period of limitation with respect to any 
additional deficiency shown to be due in a subsequent deficiency notice.
    (2) This paragraph may be illustrated by the following example:

    Example. A taxpayer filed a return for the calendar year 1973 on 
April 15, 1974; the notice of deficiency was mailed to him (at an 
address within the United States) on April 15, 1977; and he filed a 
petition with the Tax Court on July 14, 1977. The decision of the Tax 
Court became final on November 6, 1978. The running of the period of 
limitation for assessment is suspended from April 15, 1977, to January 
5, 1979, which date is 60 days after the date (November 6, 1978), on 
which the decision became final. If in this example the taxpayer had 
failed to file a petition with the Tax Court, the running of the period 
of limitation for assessment would then be suspended from April 15, 1977 
(the date of notice), to September 12, 1977 (that is, for the 90-day 
period in which he could file a petition with the Tax Court, and for 60 
days thereafter).

    (3) For provisions relating to suspension of the running of the 
period of limitation with respect to collection of ``second tier'' 
excise taxes (as defined in section 4963) until final resolution of a 
refund proceeding described in sections 4961 and 7422 for the 
determination of the taxpayer's liability for the second tier taxes, see 
Sec. 53.4961-2 (e)(4).
    (b) Corporations joining in consolidated return. If a notice under 
section 6212(a) with respect to a deficiency in tax imposed by subtitle 
A of the Code for any taxable year is mailed to a corporation, the 
suspension of the running of the period of limitation provided in 
section 6503(a)(1) shall apply in the case of corporations with which 
such corporation made a consolidated income tax return for such taxable 
year. Under Sec. 1.1502-77(a) of this chapter (Income Tax Regulations), 
relating to consolidated returns, notices of deficiency are mailed only 
to the common parent.

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 7244, 37 FR 28898, Dec. 
30, 1972; T.D. 7838, 47 FR 44251, Oct. 7, 1982; T.D. 8084, 51 FR 16305, 
May 2, 1986]