- 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 as
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011