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under which certain items relating to distributions by a
partnership are defined as partnership items, and the
illustration of those rules in section 301.6231(a)(3)-
1(c)(3), Proced. & Admin. Regs. However, contrary to
petitioners’ argument summarized above, we believe that the
application of those rules to the subject adjustments under
section 752(b) buttress our conclusion that the subject
adjustments are partnership items.
As discussed above, the regulations define as
partnership items certain items relating to distributions
from the partnership “to the extent that a determination
of such items can be made from determinations that the
partnership is required to make”. Sec. 301.6231(a)(3)-
1(a)(4), Proced. & Admin. Regs. In connection with a
distribution from the partnership, the partnership is
required to determine “The amount of money distributed to
a partner”. Sec. 301.6231(a)(3)-1(c)(3)(ii), Proced.
& Admin. Regs. The adjustments at issue in this case
involve respondent’s determination that petitioners made
constructive distributions of money to various partners.
Thus, the regulations upon which petitioners rely, section
301.6231(a)(3)-1(c)(3), Proced. & Admin. Regs., require
petitioners to determine the very items at issue in these
cases.
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