Wayne Caldwell Escrow Partnership, Roy Dimon, John and Mary Schuenemann, Joseph and Louise O'Neal, Charles and Lovetta Niven, Chalton and Cynthia Thomas, Partners Other Than the Tax Matters Partner - Page 24

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             provide that such an item is more appropriately determined               
             at the partnership level than at the partner level.  Sec.                
             6231(a)(3); sec. 301.6231(a)(3)-1, Proced. & Admin. Regs.                
             The phrase "nonpartnership item" means an item which is not              
             a partnership item.  Sec. 6231(a)(4).                                    
                  The jurisdiction of this Court to readjust partnership              
             items depends upon the mailing of a valid notice of FPAA by              
             the Commissioner to the tax matters partner and the filing               
             of a timely petition for readjustment by the tax matters                 
             partner or by a notice partner with an interest in the                   
             outcome.  Sec. 6226(a) and (b); Rule 240(c); Seneca, Ltd.                
             v. Commissioner, 92 T.C. 363, 365 (1989), affd. without                  
             published opinion 899 F.2d 1225 (9th Cir. 1990).  The                    
             mailing of a valid notice of FPAA by the Commissioner to                 
             the tax matters partner triggers the time period for filing              
             a petition for readjustment by either the tax matters                    
             partner or a notice partner under section 6226(a) and (b)                
             and is a jurisdictional prerequisite to the commencement of              
             a partnership action.  Sec. 6226(a); Rule 240(c); Maxwell                
             v. Commissioner, 87 T.C. 783, 788-789 (1986).                            
                  The tax matters partner has 90 days after the                       
             Commissioner mails a valid notice of FPAA to the tax                     
             matters partner in which to file a petition for readjust-                
             ment in this Court, in the District Court in which the                   






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