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 13

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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                
               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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