- 17 -
that her husband filed for bankruptcy.8 Specifically, the
Commissioner argued that the taxpayer's partnership items
converted to nonpartnership items by virtue of section
6231(a)(12), which provides that a husband and wife who have a
joint interest in a partnership generally shall be treated as one
person (or partner).
In rejecting the Commissioner's position, we noted that
section 301.6231(a)(12)-1T(a), Temporary Proced. & Admin. Regs.,
52 Fed. Reg. 6793 (Mar. 5, 1987), establishes an exception to the
general rule stated in section 6231(a)(12) by providing that
spouses holding a joint interest in a partnership are treated as
separate partners. Further, focusing on the bankruptcy rule set
forth in section 301.6231(c)-7T(a), Temporary Proced. & Admin.
Regs., 52 Fed. Reg. 6793 (Mar. 5, 1987), we concluded that the
temporary regulation "concerns itself with the treatment of items
as partnership items with respect to a partner named as a debtor
in a bankruptcy proceeding; partnership items of such a partner
are treated as nonpartnership items." Dubin v. Commissioner,
supra at 334. We concluded our analysis as follows:
8 The Commissioner's position was born of the fact that the
Commissioner had not notified the taxpayer of the partnership
level proceedings but rather issued the taxpayer a notice of
deficiency. The case was before the Court on the parties' cross-
motions to dismiss for lack of jurisdiction. The Commissioner
argued that the case should be dismissed on the ground that the
petition was not timely filed, and the taxpayer moved to dismiss
on the ground that the notice of deficiency was invalid.
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