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Spouse filing joint return with individual holding
separate interest--(1) In general. [With exceptions
not applicable here] * * *, a spouse who files a joint
return with an individual holding a separate interest
in the partnership shall be treated as a partner for
purposes of subchapter C of chapter 63 of the Code.
Thus, the spouse who files a joint return with a
partner will be permitted to participate in
administrative and judicial proceedings.
Respondent contends that, notwithstanding the conversion of
decedent's partnership items to nonpartnership items pursuant to
section 301.6231(c)-8T, Temporary Proced. & Admin. Regs., 52 Fed.
Reg. 6794 (Mar. 5, 1987), Mrs. Callaway was at all times treated
as a Mountain View partner who was fully entitled to participate
in partnership level proceedings pursuant to section
301.6231(a)(2)-1T, Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6790 (Mar. 5, 1987). In this regard, respondent asserts that the
notices of deficiency for affected items are valid as to Mrs.
Callaway and that such notices were timely issued following the
conclusion of the partnership level proceeding in the U.S. Court
of Federal Claims.
Based upon the plain language of the provisions in question,
we agree with respondent that Mrs. Callaway's partnership items
did not convert to nonpartnership items pursuant to section
301.6231(c)-8T, Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6794 (Mar. 5, 1987). We begin with section 301.6231(a)(2)-1T(a),
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6790 (Mar. 5,
1987), which plainly states that a spouse who files a joint
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