- 11 -
reviewed in partnership level proceedings. N.C.F. Energy
Partners v. Commissioner, supra at 745.
However, as explained in White v. Commissioner, 95 T.C. at
212-214, an individual partner's liability for section 6621(c)
interest normally cannot be raised in a so-called affected items
proceeding. In White, the Commissioner issued a notice of
deficiency to the taxpayers solely for additions to tax after the
underlying tax deficiency was assessed as a computational
adjustment following the conclusion of partnership level
proceedings. When the taxpayers filed a petition contesting the
additions to tax as well as their liability for additional
interest under section 6621(c), the Commissioner responded by
filing a motion to dismiss for lack of jurisdiction as to the
additional interest.
In granting the Commissioner's motion to dismiss in White,
we first held, based upon a combined reading of sections 6211(a),
6230(a), and 6601(e)(1), that interest computed at the increased
rate prescribed in section 6621(c)(1) is not a deficiency within
the meaning of section 6211(a). Consistent with this holding, we
rejected the taxpayers' argument that section 6230(a)(2)(A)(i)
provides statutory authority for this Court to redetermine such
interest. Next, we analyzed section 6621(c)(4) and concluded
that our jurisdiction under that provision is limited to
determining only the portion of a deficiency in tax imposed under
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011