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Section 6229(a) provides that respondent has 3 years from the
date of the filing of the partnership return in which to assess
the tax based on any partnership or "affected" item.10 If an
FPAA is issued before the end of the 3-year period of limitations
of section 6229(a), that period is suspended for the time during
which a partnership-level proceeding may be brought and if such a
proceeding is timely brought, until a decision in that proceeding
becomes final, and for 1 year thereafter. Sec. 6229(d).
Sections 7481 and 7483 provide generally that a decision of this
Court becomes final, in the absence of a timely filed notice of
appeal, 90 days from the date the decision is entered. Since, in
the instant case, it is undisputed that the applicable
limitations period was open when two FPAA's were issued to the
partnership, and that the partnership timely filed a petition in
this Court based on such FPAA's, the period of limitation for
issuing notices of deficiency was suspended, under section
6229(d), for 1 year after the decision in the partnership
proceeding before this Court became final.
The parties agree that the period of limitation for issuing
notices of deficiency for affected items is suspended for 90 days
plus 1 year following the entry of the decision in the
partnership proceeding. The parties disagree, however, as to the
10 Consistent with this Court's decision in Hambrose Leasing v.
Commissioner, 99 T.C. 298 (1992), the deductions at issue are
"affected" items.
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