Legal Document

541 U.S. 114 UNITED STATESv.GALLETTI ET AL. No. 02-1389. Supreme Court of United States. Argued January 12, 2004. Decided March 23, "[T]he amount any tax imposed [by the Internal Revenue Code] shall be assessed within three years after return was filed." 26 U.S.C. § 6501(a). If a is properly so assessed, statute limitations for collecting it extended by 10 from assessment date. 6502(a). Respondents were general partners partnership (hereinafter Partnership) that failed to pay significant federal employment taxes 1992 1995. The Service (IRS) timely Partnership, but never paid. later filed Chapter 13 bankruptcy protection, and IRS then proof claims against them Partnership's unpaid taxes. objected, arguing Partnership did not extend 3-year period partners, who had been separately period. Bankruptcy District agreed sustained respondents' objections. Ninth Circuit affirmed, holding since respondents are "taxpayers" under 7701, which defines "taxpayer" mean "any person subject internal revenue tax," they also §§ 6203 6501. As such, court held only with respect Partnership. Held: proper suffices collect in judicial proceeding liable payment debts. Pp. 119-124. (a) argue valid triggering 10-year increase must name individually, as primarily debt. They claim, first, relevant taxpayers 6203, requires made "recording liability taxpayer." Although correctly concluded an individual partner can "taxpayer," speaks taxpayer's "liability," indicates taxpayer determined. Here, arose failure comply 3402(a)(1)'s requirement "employer [paying] wages" deduct withhold And 3403 makes clear "employer" fails submit requisite "liable" taxpayer. In this case, "employer." Second, claim debt because California law jointly severally However, debt, show And, law, its separate entities. Thus cannot that, all intents purposes, imposing directly on equivalent instead prove both "employers." That debts irrelevant determination. 120-121. (b) Code does require Government make assessments single persons or entities secondarily order 6502's apply collection actions those It "assessment" refers little more than calculation recording liability, see, e. g., 6201, taxpayer, resulting governs time extension enforcing liability. States v. Updike, 281 489, 495. Once has nothing duplicate efforts assessing same individuals actual are, reason state assessment's consequences — attach without reference special circumstances parties. thereby extending now seeks proceedings respondents. 121-124. 314 F. 3d 336, reversed remanded. THOMAS, J., delivered opinion unanimous Court. CERTIORARI TO THE STATES COURT OF APPEALS FOR NINTH CIRCUIT. Kent L. Jones argued cause With him briefs Solicitor General Olson, Assistant Attorney O'Connor, Deputy Hungar, Thomas J. Clark, Andrea R. Tebbets. David Haberbush brief Joel Barry Feinberg, A. Lavar Taylor, Charles Rosen. JUSTICE THOMAS 1 Section 6501(a) states except otherwise provided, "the title 3 . no such begun expiration period." years, however, date assessment. We decide case whether, avail itself assess each might partnership. Under maintains identity partnership, Because, purposes 6501-6502 we hold partnership's Government's sufficient proceeding, whether 2 * Respondents, Abel Cosmo Galletti, Sarah Francesco Briguglio, Angela Marina Cabrillo Company (Partnership). From 1995, liabilities incurred. 1994, 1996, satisfied Galletti Briguglio joint petitions relief October 20, 1999, February 4, 2000, respectively. Gallettis' proceedings, $395,179.89 between 1994 July 1995 Briguglios' $427,402.74. included secured totaling $403,264.06 November 1996 4 objected ground proven estates. dispute Nor limitations, years. Rather, To argued, Because not, expired, could longer them. objections claims. 5 Appeals affirmed. prescribed 6501 here "taxpayer." 7701(a)(14), "[t]he Partnership." 340 (2002). 6 alternative conceded matter right payment, bankruptcy. See 11 101(5)(A) (defining "claim" including "right reduced judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, unsecured"). rejected argument because, creditor obtain judgment before Cal. Corp. Ann. 16307(c) (West Supp. 2004). At obtained respondents, obtaining expired. 7 granted certiorari, 539 940 (2003), reverse. II 8 provides "The office Secretary [of Treasury] accordance rules regulations Secretary." 6203. Within 60 days assessment, required "give notice tax, stating demanding thereof." 6303(a). 6502. 9 centers occurring attached when Partnership.1 insist (that is, one would trigger limitations) individually. This so, according [relevant] taxpayer[s]" Partnership.2 reject arguments turn. argue, agreed, individually statutory definition includes "person" "an individual" "partnership," (a)(1). observed although interpreted 6203's Treasury record taxpayer" partners. inquiry end there. (emphasis added), 3402(a)(1) Code, "every employer making Moreover, deducted withheld." 3403. When taxes, employer. Partnership.3 B 12 their 16306 Brief 8-16. our prior discussion demonstrates, unless California's principles, 16201. fact III turn question entities.4 contains requirement. Respondents' turns mistaken understanding function nature identical initiation formal action entity numerous uses throughout term See, U. S. C. 6201 (assessment authority); (method assessment); 6204 (supplemental assessments); CFR 601.103 (2003). Black's Law Dictionary 111 (7th ed. 1999) "[d]etermination [tax] rate something, damages"). Federal system basically self-assessment," whereby computes due files appropriate form along payment. 601.103(a) most cases, accepts self-assessment simply records Where file miscalculates due, "all (including interest, additional amounts, additions assessable penalties)," 6201(a), Secretary," other words, where rejects discovers return, calculates books. 14 sure, triggers certain consequences. After established recorded, employ administrative enforcement methods tax. 6321-6327, 6331-6334. extends during But act change assessment: calculate 15 ("the ... assessed"); 6502(a) ("[w]here tax"). 489 (1930), Court, interpreting predecessor 6502, extent liability," id., at whole. basis Updike corporation, applied suit corporation derivatively transferee. Id., 494-496. Wright, 57 561, 563 (CA7 1995) (holding based Updike's principle "all-for-one, one-for-all," whole). 16 17 respondents.5 therefore reverse remand further consistent opinion. 18 ordered. Notes: attempting enforce do address commence lien levy property decline interest penalties demand even if liable, still barred contend arises applies. 30-34. have forfeited failing raise courts below. Indeed, closest come applies Appeals, "under collections limitation provision underlying partnership." Appellee's Opening Nos. 01-55953, 01-55954 (CA9), p. 14. argument, course, contrary position Our decision Court's inUnited Williams, 514 527, 532-536 (1995), 6511 broadly. interpret use "secondary liability" derived original primary first 344 (CA9 2002). bankruptcy, automatic stay bringing outside secondary 362(a)(1). dispute, adjudication disputed satisfies there "judgment partner." allowable "whether judgment."

Classification Label: 11