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issued on October 11, 1988. A partnership-level action was
brought on February 21, 1989. Petitioners filed a bankruptcy
petition on January 4, 1995, which had the effect of converting
the partnership items into nonpartnership items as to petitioners
as of that date. Secs. 6229(f), 6231(b)(1)(D) and (c)(2); sec.
301.6231(c)-7T(a), Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6779, 6793 (March 5, 1987). The 1995 notice was issued on
November 13, 1995, less than 1 year after the date upon which the
partnership items became nonpartnership items. That notice was
rescinded with petitioners' consent, and the 1996 notice was
issued, both on February 6, 1996.4
Thus, if the original FPAA was timely, it would have
operated to suspend the section 6229(a) period of limitations,
which would have remained suspended until 1 year after the
partnership items involved in this case became nonpartnership
items due to petitioners' bankruptcy. Because the original
notice of deficiency was issued within 1 year of the date upon
which the the partnership items became nonpartnership items, it
would also have been timely. However, the FPAA was not issued
until after the expiration date of the 3-year statutory period
generally applicable to an assessment with regard to the
partnership's 1983 tax year, April 15, 1987, and both notices of
4 Sec. 6212(d) provides that a notice of deficiency that is
later rescinded operates to suspend any period of limitations
while it is still outstanding. Here, this presents no limit.
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