- 5 - provisions were enacted partly in response to the administrative problems experienced by the Internal Revenue Service in auditing returns of partnerships, particularly tax shelter partnerships with numerous partners. Staff of Joint Comm. on Taxation, General Explanation of the Revenue Provisions of the Tax Equity and Fiscal Responsibility Act of 1982, at 268 (J. Comm. Print 1982). As we stated in an earlier case interpreting the TEFRA partnership provisions: By enacting the partnership and audit litigation procedures, Congress provided a method for uniformly adjusting items of partnership income, loss, deduction, or credit that affect each partner. Congress decided that no longer would a partner's tax liability be determined uniquely but "the tax treatment of any partnership item [would] be determined at the partnership level." Sec. 6221. [Maxwell v. Commissioner, 87 T.C. 783, 787 (1986); alteration in original.] Section 6221 provides that the tax treatment of partnership items shall be determined at the partnership level, except as otherwise provided in subchapter C of chapter 63 of the Code. Section 6231(a)(3) provides that a "partnership item" means any item required to be taken into account for the partnership's taxable year under any provision of subtitle A of the Code to the extent prescribed by the regulations as an item that "is more appropriately determined at the partnership level than at the partner level." Section 6231(a)(4) defines "nonpartnership items" as those items that are not partnership items.Page: Previous 1 2 3 4 5 6 7 8 9 Next
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