Monetary II Limited Partnership, J. Thomas Hannan, Tax Matters Partner v. Commissioner of Internal Revenue Service
Opinion
Opinion
O'Scannlain, J.
We must decide whether a former partner can consent to extend the limitations period for the assessment of federal income tax attributable to the partnership’s activities.
I
Monetary II Limited Partnership (“Monetary” or “the partnership”) is a California limited partnership that invests in oil and gas properties. At its formation, the partnership had only two- general partners, Arthur Lach-man and Richard W. Naumann, each of whom had a 1.06 percent interest in the partnership. In March 1985, Laehman and Naumann resigned from the partnership and, from that time forward, neither held any interest. Subsequent to their resignation, Edgar Osgood assumed the position of general partner.
In early 1986, the Internal Revenue Service (“IRS”) sent a letter to Monetary informing it that the partnership’s 1983 return had been selected for examination. The letter was addressed to the attention of the “tax matters partner” and mailed to Lachman’s address. On February 25,1986, the revenue agent assigned to the case contacted Nau-mann regarding this matter, Naumann informed the agent that neither he nor Lach-man were partners in Monetary, and that Osgood was the new general partner.