Document: 506 U.S. 523 113 S.Ct. 927 122 L.Ed.2d 306 Sheldon B. BUFFERD, Petitionerv.COMMISSIONER OF INTERNAL REVENUE No. 91-7804. Argued Nov. 30, 1992. Decided Jan. 25, 1993. Syllabus* Subchapter § of the Internal Revenue Code seeks to eliminate tax disadvantages that might dissuade small businesses from adopting corporate form and lessen burden on such by means a pass-through system under which income, losses, deductions, credits are attributed individual shareholders in manner akin treatment partnerships. Petitioner Bufferd, shareholder an corporation, Compo Financial Services, Inc., claimed his 1979 income return pro rata share loss deduction investment credit reported its for 1978-1979 year. 6501(a) establishes generally applicable statute limitations allowing Service assess deficiencies "within 3 years after was filed." (Emphasis added.) As provided 6501(c)(4), Bufferd extended period return, but no extension obtained with respect return. In 1987, Commissioner determined were erroneous sent notice deficiency based he had The Tax Court found Commissioner, rejecting Bufferd's argument claim time barred because disallowance error Compo's 3-year lapsed. Appeals affirmed, holding that, where is assessed against shareholder, filing date shareholder's relevant purposes 6501(a). Held: assessing liability corporation runs filed. Plainly, "the" referred taxpayer whom assessed, since can only determine whether understated obligation should be examining That erroneously asserted passed through consequence. errors did not could affect liability, hence whose benefit errors. By contrast, corporation's does contain all information necessary compute taxes thus regarded as triggering assessment. Cf. Automobile Club Michigan v. 353 180, 188, 77 707, 712, 1 746. statutory evidence policy considerations proffered offer basis questioning this conclusion. Pp. ____. 952 F.2d 675 (CA 2 1992), affirmed. WHITE, J., delivered opinion unanimous Court. Stuart Jay Filler, DC, appointed Court, petitioner. Kent L. Jones, respondent. Justice WHITE On petitioner, "pass-through" items portions question presented permitted petitioner's or We conclude Second Circuit * Code, 26 U.S.C. §§ 1361-1379, enacted 1958 businesses. accomplishes these goals See 1366-1368.1 addi tion, 1966, "S corporations" have been liable certain capital gains other taxes. 80 Stat. 111, 113; 1374, 1378. treasurer corporation. February 1, 1980, filed year December 26, 1978 November required 6037(a) Code.2 arising partnership interest venture known Printers Associates. wife joint April 15, 1980.3 Their pursuant provisions S. 4 providing may within filed.4 written agreement. 6501(c)(4). March 1983, before three filed, petitioner agreed extend claims him. No 5 contended Commissioner's assessment relying decision Fehlhaber 94 T.C. 863 (1990), aff'd, 954 653 (CA11 1992). App. 61. (1992). Because another has contrary view, we granted certiorari. 505 ----, 112 2990, 120 868 (1992).5 II 6 Title states simply "the amount any imposed title shall . ." issue us source Petitioner's position object except him To disallow those items, argues, must acted Under approach, becomes two returns, there adequate submission. doubt courts below properly concluded, argued, it triggers running period. 7 taxpayer's then, assessed. Here, sought owed entitled. fact case, stockholder-taxpayer plain language 6501(a), make ran return.6 8 asserts beginning period, deficient precisely If rely would forced conduct incomplete information: 9 "While [the return] show distributive indicate adjusted stock, if deductible. Nor sources. Moreover, relate same taxable Fehlhaber, supra, at 869 (citation omitted). 10 noted analogous cases, returns "lack data computation deficiencies" 746 (1957) (citing Lane-Wells Co., 321 219, 64 511, 88 L.Ed. 684 (1944)).7 11 supports view when read light related pertaining corporations. Section 6012(a)(2) requires both C corporations file returns.8 specifies each provide (including "each item corporation") further that: "Any section shall, [26 6501-6531], treated 6012." 12 do see aid cause. Read together, 6012(a)(2), 6037(a), establish containing desiring act filing. Nothing face demonstrates individual's brought compass 6037(a)'s reference "any return" portion reports losses anything, phrase "[a]ny section," coupled concerned describing contents indicates provision meant begins. 13 argues reading afoul prior subject taxation. According purpose served establishing applied reporting stockholders. This fails even taxed, examination lay valid status. originally functioned set starting determination made. United States Adams Building 531 342, 343, n. (CA6 1976); also F.2d, 677 863).9 maintains function superfluous because, election status invalid, "automatically existing rules corporations." Brief 38. But proposition hardly self-evident, cites authority support it. absence files failed allow "at time." 6501(c)(3); cf. Germantown Trust Co. 309 304, 307, 60 566, 568, 84 770 (1940); Mason States, 801 F.Supp. 718, 721 (ND Ga.1992).10 accordance new 6037. Such will considered 6012 chapter 66, relating limitations. Thus, example, limitation collection due upon subsequent entitled benefits subchapter S, run 6037." S.Rep. 85th Cong., 2d Sess., 226 (1958), U.S.Code Cong. & Admin.News 1958, 4791, 5014. 14 Although passage seem following reasoning Ninth Kelley 877 756 (1989), "for example" necessarily implies Senate mind present case. implication necessary: just easily avoid foreclosing applications returns. Indeed, omitted, now argue 1374 controlled instead governed some event. Likewise, phrase, argued legislative history refers exclusively case status, penalties 6037(a). 15 additional Report accompanying 1982 amendments part: 16 "Under law, proceedings between dispute. issues involving deductions separately affected. Statutes apply level, individual. shareholders." 97-640, p. 25 (1982), 1982, pp. 3253, 3275). 17 little value either side. While views Congress engaged amendment law intent behind "entitled significant weight," Seatrain Shipbuilding Corp. Shell Oil 444 572, 596, 100 800, 814, 63 36 (1980), instance, report's account "present law" colored, wholly determined, already adopted espoused Commissioner. Leonhart 27 TCM 443 (1968), ¶ 68,098 P-H Memo TC, aff'd grounds, 414 749 (CA4 1969). 18 Circuit's rejection prompted part concern unfairly burdening shareholders, who find difficult obtain records defend adjustment made Fifth Judge Goldberg Green 963 783 (CA5 neatly summarizes appropriate response concern: 19 "First, unfamiliar world 'an dependent maintained entity.' 658 trust taxation examples). Second, rule impose undue shareholder. A 'take steps ensure preserves records.' Id. protective constitute overly oppressive task 678. Finally, reject suggestion elevate 'perceived unfairness taxpayers' over our duty strictly construe favor government application so bar rights government. 658." Id., 789.11 III 20 below, hold judgment 21 It ordered. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 50 499. substantially amended recodified Revision Act 96 1669. effect 1373-1374 (1976 ed.), differ respects provisions. These differences part, reads: "§ Return "(a) general "Every year, stating specifically gross allowable subtitle [and information]. Any 66 (relating limitations), Phyllis settled party action. reads 6501. Limitations General "Except otherwise (CA9 1989), held controls. Eleventh Circuits joined declining follow Kelley. 1992); Even credibly ambiguous expressly how their stockholders, construction reasonable one say least, accept absent convincing grounds Badaracco 464 386, 104 756, 78 549 (1984), " 'limitations statutes barring unpaid construed Government.' 392, S.Ct., 761 (quoting Lucia 474 565, 570 1973)). circumstances, incompleteness provides reason doubting understanding Code. thereby suggest cases supply process mere completeness sufficient 6012. Persons "Returns following: "(2) Every A. Since limited taxation, serves determining sufficiently lacking textual obviate need examine history. However, several 6037 contains interpretation. See, e.g., 788-790; 656-657. introduced Technical Amendments 72 1606, 1656. explaining states: "Notwithstanding electing small-business 1954 additionally cannot therefore identical treatment. 11-12, 21-22. single premise assertion. At oral argument, opposite Tr. Oral Arg. 27-28, mainly Munter, 331 210, 67 1175, 91 1441 (1947), which, without addressing issue, allowed shareholders' 1940 finding creation merger 1928, acquired accumulated earnings profits predecessor recent indirect view: "We whether, issued, expired 'is respondent deficiency.' [citing T.C., 868]. consistently, regard nature entity involved. [cases partnerships, trusts, corporations]." Lardas 99 [Current Regular Decisions] Ct.Rep. (CCH) Dec. 48,592, 5216 event, doubtful conclusion follows premise, stockholders markedly different

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