13
following the conclusion of the partnership proceeding. See sec.
6225(a); Maxwell v. Commissioner, 87 T.C. 783, 791 n.6 (1986).
The assessment of tax attributable to partnership items of a
partnership subject to the TEFRA provisions shall be made with
respect to any partner during the period provided by sections
6229(a) through (f). A settlement agreement converts partnership
items to nonpartnership items, and the partner that enters into
the settlement agreement is no longer treated as a party in the
partnership proceeding. Secs. 6226(d)(1)(A), 6231(b)(1)(C). The
period for assessment shall not expire before 1 year after the
date on which the parties enter into a settlement agreement.
Sec. 6229(f). RDB, as a pass-thru partner, entered into a
settlement agreement with respondent with respect to the
partnership items of Valley Cable for the taxable years 1983 and
1984. The settlement agreement entered into by RDB binds
indirect partners, such as the Rays and Dominguezes, with respect
to the partnership items of Valley Cable. Sec. 6224(c)(1). The
dispute in these cases centers on when the parties entered into
the settlement agreement.
Petitioners argue that respondent made a settlement offer
which they accepted when they delivered the executed Form 870-
L(AD) to respondent on May 6, 1991. Respondent argues that the
Form 870-L(AD) embodies the settlement agreement, and that the
agreement became binding when executed by respondent's authorized
representative on December 6, 1991. Respondent contends that the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011