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tax purposes. Under sections 6226 and 6231, such partner is not
a party to this partnership action and is not bound by our
determinations. However, the partner is still a party to the
partnership agreement and retains his interest as partner in the
partnership. Thus, the allocations of partnership items must be
computed by including the interests of all partners, including
any who have accepted the out-of-pocket settlement.
Petitioner also contends that by the terms of the
partnership agreement, the tax matters partner has the authority
to accept the out-of-pocket settlement on behalf of individual
partners, that he has exercised such authority with respect to
certain partners, and that these partners are no longer parties
to this action. Because we have held that the status of the
partners with respect to these cases does not affect our
jurisdiction to determine the allocation of the partnership items
above, we find no merit in this argument.
In the alternative, petitioner argues that the proper
interpretation of the agreement supports his contention that the
partnership items should be allocated to a limited number of
partners.
A settlement agreement between respondent and a tax matters
partner related to the determination of partnership items for any
partnership taxable year is binding on the parties to the
agreement with respect to the determination of partnership items
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