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under section 465 must be decided in a partner-level proceeding,
not in a partnership-level proceeding. In that opinion, the
Court also decided that, for purposes of any subsequent
litigation involving the partnership, the installment note for
the Additional Equipment was nonrecourse as to the partnership.
Id. at 303, 312. The decision in that case was entered on
September 24, 1992, and became final on December 23, 1992.
On October 6, 1993, this Court granted respondent's "Motion
to Dismiss for Lack of Jurisdiction as to I.R.C. Section 465 and
To Strike" in Hambrose II, and all references to the "at risk"
issue were, therefore, stricken from the pleadings. On May 27,
1994, this Court entered a decision in Hambrose II based on a
stipulated settlement agreement under Rule 248(a) in which
respondent accepted as filed the partnership items for the
taxable years 1985 and 1986 of the partnership. This decision
became final on August 25, 1994.
On May 19, 1995, respondent issued statutory notices of
deficiency to petitioners, one for the 1985 tax year and one for
the 1986 tax year, in which the claimed deductions for 1985 and
1986 with respect to the partnership were disallowed, and
additions to tax and increased interest were asserted.
Untimely Notice
The first issue for decision is whether respondent timely
issued notices of deficiency to petitioners in this case.
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