7
and that if disproportionate allocations of items with respect to
any partner are possible under the terms of the agreement, then
the test has not been satisfied. We held:
[F]or purposes of determining whether a partnership is a
small partnership and whether the same share rule is
satisfied, the test should be applied by determining whether
the partnership reported more than one partnership item for
the year and, if so, how those items were shared by each
partner. This determination should be made by respondent as
of the date of commencement of the audit of the partnership
(but not necessarily on that date) by examining the
partnership return and the corresponding Schedules K-1s, and
any amendments thereto received prior to this date.
* * * * * * *
Because this section serves the limited purpose of
determining to whom to issue a statutory notice or whether
to issue an FPAA, and for the sake of judicial economy, we
will not for these purposes permit a partner or
representative of a partnership or respondent to claim a
result other than that identified in the return and
Schedules K-1s as filed and amended prior to the date of
commencement of the partnership audit.
Harrell v. Commissioner, 91 T.C. at 246-247; see also Z-Tron
Computer Program v. Commissioner, 91 T.C. 258 (1988).4
In McKnight v. Commissioner, T.C. Memo. 1991-514,
suppplemented by 99 T.C. 180 (1992), affd. 7 F.3d 447 (5th Cir.
4
We note that although Harrell v. Commissioner, supra, and Z-
tron Computer Program v. Commissioner, supra, hold that one may
not look behind the returns and Schedules K-1 for purposes of the
same share requirement, each opinion provides a detailed
examination of the partnership agreement and its provisions
regarding the partners' distributive share. Moreover, we
question whether this Court would be able to decide whether a
specific allocation falls within the realm of sec. 704(c) or
"similar principles" without looking to the partnership agreement
or other supporting documents. See sec. 301.6231(a)(1)-1T(a)(3),
Temporary Proced. & Admin. Regs.
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