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section 6231(b)(1)(A), or alternatively, by section
6231(b)(1)(C), and that the Court therefore had jurisdiction to
enter the decision with respect to such item. We address
petitioners' contentions in turn.
Section 6231(b)(1)(A)
Petitioners contend that respondent's answer, filed July 5,
1995, constitutes notice from the Secretary that the loss would
be treated as a nonpartnership item pursuant to section
6231(b)(1)(A). Respondent contends that an answer is merely a
responsive pleading and is not the type of "notice" envisioned by
section 6231(b)(1)(A).
The Court is not aware of any case or regulation
interpreting or defining the term "notice" as it is used in
section 6231(b)(1)(A). However, we need not define such term in
this proceeding because at the time respondent filed her answer,
she was not authorized to mail petitioners "notice" under section
6231(b)(1)(A). This is because section 6231(b)(3) requires that
notice under section 6231(b)(1)(A) be "mailed before the day on
which the Secretary mails to the tax matters partner a notice of
the beginning of an administrative proceeding at the partnership
level with respect to such items".
In the present case, respondent issued the NBAP on or about
June 16, 1993, and she filed her answer on July 5, 1995. Under
section 6231(b)(3), respondent was authorized to mail a notice of
conversion pursuant to section 6231(b)(1)(A) only up until June
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