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affected items requiring factual determinations at the individual
partner level. N.C.F. Energy Partners v. Commissioner, supra at
745.
With the foregoing as background, we turn first to
respondent's Motion to Dismiss for Lack of Jurisdiction and to
Strike. Respondent asserts that, under the circumstances
presented, the Court lacks jurisdiction, either under its
authority to redetermine a deficiency or under its authority to
determine an overpayment, to consider petitioners' liability for
interest imposed at the increased rate provided under section
6621(c).
Interest computed at the increased rate provided under
section 6621(c) is imposed on a substantial underpayment of tax
that is attributable to a tax-motivated transaction.4 Because
the application of section 6621(c) turns on elements that are
specific to an individual partner, it follows that such interest
is correctly characterized as an affected item that cannot be
4 Sec. 6621(c) provides for interest at 120 percent of the
normal rate provided under sec. 6601. Sec. 6621(c) is applicable
solely with respect to interest accruing after Dec. 31, 1984,
even though the transaction was entered into prior to the date of
enactment of sec. 6621(c). Solowiejczyk v. Commissioner, 85 T.C.
552 (1985), affd. without published opinion 795 F.2d 1005 (2d
Cir. 1986). Sec. 6621(c) was repealed by sec. 7721(b) of the
Omnibus Budget Reconciliation Act of 1989, Pub. L. 101-239, 103
Stat. 2106, 2399, effective with respect to returns the due date
for which is after Dec. 31, 1989.
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