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A. Appropriateness to Partnership Proceeding
1. Principal Provisions of the Code
This case was commenced under the provisions of subchapter C
(sections 6221 through 6234), chapter 63, subtitle F of the
Internal Revenue Code (subchapter C). Section 6221 provides:
“Except as otherwise provided in this subchapter, the tax
treatment of any partnership item shall be determined at the
partnership level.” The term “partnership item” is defined in
section 6231(a)(3):
The term “partnership item” means, with respect to a
partnership, any item required to be taken into account
for the partnership’s taxable year under any provision
of subtitle A to the extent regulations prescribed by
the Secretary provide that, for purposes of this
subtitle, such item is more appropriately determined at
the partnership level than at the partner level.
Section 6226(f) delineates our jurisdiction to determine
partnership items:
A court with which a petition is filed in accordance
with this section shall have jurisdiction to determine
all partnership items of the partnership for the
partnership taxable year to which the notice of final
partnership administrative adjustment relates and the
proper allocation of such items among the partners.
A “computational adjustment” (computational adjustment) is
the change in the tax liability of a partner that properly
reflects the treatment under subchapter C of a partnership item.
Sec. 6231(a)(6). Generally, the deficiency procedures set forth
in subchapter B, chapter 63, subtitle F of the Internal Revenue
Code (the deficiency procedures) do not apply to the assessment
and collection of any computational adjustment. See sec.
6230(a)(1).
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Last modified: May 25, 2011