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or more partners within the time period specified in
section 6223(d), the statute provides a comprehensive
remedy provision in section 6223(e). Under the remedy
provision, the effect of the Secretary's failure to
provide timely notice depends upon whether the partnership
proceeding is finished or is still going on at the time the
Secretary mails "notice of the proceeding" to the notice
partner. Sec. 6223(e)(2) and (3).
In effect, each of the notice partners to whom a
timely notice was not mailed is entitled by section 6223(e)
to decide whether to treat his or her partnership items as
nonpartnership items. If the partnership proceeding is
finished at the time the Secretary mails notice of the
proceeding to the notice partner, the partnership items of
the partner are treated as having become nonpartnership
items as of the day the Secretary mailed the partner notice
of the proceeding, unless the partner elects otherwise.
Sec. 6223(e)(2); sec. 301.6223(e)-2T(a)(2), Temporary
Proced. & Admin. Regs., 52 Fed. Reg. 6785 (Mar. 5, 1987).
That is, the partnership items are treated as
nonpartnership items unless the partner elects to take
advantage of any adjustment, decision, or settlement
agreement that is based upon the partnership proceeding.
Sec. 6223(e)(2). If the proceeding is still going on, the
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