Floyd R. Clodfelter and Enna L. Clodfelter v. Commissioner of Internal Revenue

Appellant taxpayers appeal from decision of the Tax Court upholding the Commissioner in determining deficiencies in income taxes for the years 1960 through 1964. The question presented is whether assessment of deficiency was barred by the running of the three-year period of limitations. Notice of deficiency was given by the Internal Revenue Service, and the more precise question is whether the giving of that notice is to be recognized as having occurred within the three-year period with the result that the further running of that period was suspended.

Congress has established procedures by which the Secretary may adjust or correct the tax voluntarily revealed by the taxpayer , as due. A brief description of the legislative plan may be helpful (eliminating reference to exceptions not relevant here). Citations are to the Internal Revenue Code of 1954 as amended.

Assessment of taxes must be made within three years after the return is filed (§ 6501(a)). If the Secretary determines that there is a deficiency respecting taxes as reported in the return, he must give notice before initiating collection proceedings (§ 6213(a)), and notice may be given to the taxpayer by…