Shorthorn Genetic Engineering 1982-2, Ltd., Shorthorn Genetic Engineering 1982-4, Ltd., Shorthorn Genetic Engineering 1982-5, Ltd., Walter J. Hoyt III, Tax Matters Partner, et al. - Page 11

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          administrative resolution of the partner's tax liability and                
          cannot be the subject of a partnership proceeding.  See, e.g.,              
          Maxwell v. Commissioner, 87 T.C. 783, 788-789 (1986).                       
               Petitioner has made various arguments based on an assumption           
          that respondent included partners who have accepted the out-of-             
          pocket settlement in her calculations on which the proposed                 
          decision documents are based.  Petitioner bears the burden of               
          proof in these cases.  Rule 142.  We begin by noting that there             
          is no evidence in the record concerning partners who have                   
          accepted the out-of-pocket settlement.  Therefore, we have no               
          indication that any such partners were included in respondent's             
          calculations.  We will, however, further address petitioner's               
               Petitioner argues that the partnership income, losses,                 
          credits, and liabilities calculated pursuant to the settlement              
          agreement should be allocated to a limited group of partners.               
          Petitioner contends that any partners who have accepted the out-            
          of-pocket settlement offer from respondent are not parties to               
          this proceeding pursuant to section 6226.  Therefore, petitioner            
          argues, the Court is prohibited from allocating partnership items           
          to those partners because we do not have jurisdiction to do so.             
          Petitioner also argues that pursuant to section 6231, the                   
          partnership items of the partners who have accepted the out-of-             
          pocket settlement have been converted to nonpartnership items.              

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