W. Robert Curtis and Cheryl L. Riess-Curtis - Page 10

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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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