Homer N. Cummings - Page 7

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          T.C. 1279, 1284 (1986); Maxwell v. Commissioner, 87 T.C. 783, 789           
          (1986).  Partnership items include each partner's proportionate             
          share of the partnership's aggregate items of income, gain, loss,           
          deduction, or credit.  Sec. 6231(a)(3); sec. 301.6231(a)(3)-                
          1(a)(1)(i), Proced. & Admin. Regs.                                          
          An affected item is defined in section 6231(a)(5) as any                    
          item to the extent that such item is affected by a partnership              
          item.  White v. Commissioner, 95 T.C. 209, 211 (1990).  There are           
          two types of affected items.  Id.                                           
               The first type of affected item is a computational                     
          adjustment made to record the change in a partner's tax liability           
          resulting from the proper treatment of partnership items.  Sec.             
          6231(a)(6); White v. Commissioner, supra.  Once partnership level           
          proceedings are completed, respondent is permitted to assess a              
          computational adjustment against a partner without issuing a                
          notice of deficiency.  Sec. 6230(a)(1); N.C.F. Energy Partners v.           
          Commissioner, 89 T.C. 741, 744 (1987);  Maxwell v. Commissioner,            
          supra at 792 n.9.                                                           
          The second type of affected item is one that is dependent on                
          factual determinations to be made at the partner level.  N.C.F.             
          Energy Partners v. Commissioner, supra at 744.  Section                     
          6230(a)(2)(A)(i) provides that the normal deficiency procedures             
          apply to affected items that require determinations at the                  
          partner level.  For example, additions to tax for negligence are            






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