Estate of James T. Callaway, Deceased, Elizabeth N. Callaway, Executrix, and Elizabeth N. Callaway - Page 13

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          for such items was excepted from the unified partnership audit              
          and litigation procedures.  See sec. 6230(a)(2)(A)(ii) (normal              
          deficiency procedures apply where partnership items converted to            
          nonpartnership items under secs. 6231(e)(1)(B)(i) and                       
          6231(c)(2)).  Under the circumstances, we hold that the notices             
          of deficiency for affected items are invalid insofar as they were           
          issued to decedent's estate.  Consequently, we shall dismiss this           
          case for lack of jurisdiction with respect to decedent's estate             
          and deny petitioners' motion for summary judgment as moot insofar           
          as it pertains to decedent's estate.                                        
          Jurisdiction:  Elizabeth N. Callaway                                        
               Petitioners maintain that, because Mrs. Callaway is treated            
          as a Mountain View partner solely by virtue of having filed a               
          joint return with decedent for the years in issue, her                      
          partnership items converted to nonpartnership items at the same             
          time that decedent's partnership items were so converted.  We               
               The controversy surrounding Mrs. Callaway's status as a                
          Mountain View partner involves the effect of section                        
          301.6231(a)(2)-1T(a)(1), Temporary Proced. & Admin. Regs., 52               
          Fed. Reg. 6790 (Mar. 5, 1987), which provides in pertinent part:            
                    Persons whose tax liability is determined                         
               indirectly by partnership items (Temporary).--(a)                      

          6  Again, petitioners' conversion theory raises the question                
          of the validity of the notices of deficiency.                               

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