- 12 - (1990); cf. N.C.F. Energy Partners v. Commissioner, 89 T.C. 741 (1987). That a partnership is a sham does not preclude applicability of the provisions of TEFRA. Section 6233(a) provides: (a) General Rule.--If a partnership return is filed by an entity for a taxable year but it is determined that the entity is not a partnership for such year, then, to the extent provided in regulations, the provisions of this subchapter are hereby extended in respect of such year to such entity and its items and to persons holding an interest in such entity. See also sec. 301.6233-1T (a), (c)(1), Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6779, 6795 (Mar. 5, 1987). Willner does not deny that Hardin's activities were fraudulent. He does not deny that we have jurisdiction with respect to the partnership that is the subject of these proceedings, and he has stipulated that the FPAA was timely. Willner contends that section 6233 does not apply to him because he was not a partner in the entity that filed a partnership return for 1986. He relies on the 21 Schedules K-1 attached to the Form 1065, which did not include a Schedule K-1 for him. He seeks relief on the basis that the Schedules K-1 on which he relied in claiming losses were not attached to any partnership return. He defines the issue as: "Were Arthur and Susan Willner partners in the entity that filed a partnership return for 1986?" Using the words of the statute, we would define the issue asPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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