- 9 -
includes the accounting practices and the legal and
factual determinations that underlie the determination
of the existence, amount, timing, and characterization
of items of income, credit, gain, loss, deduction, etc.
* * *
Except as otherwise provided by regulations, the tax
treatment of subchapter S items must be determined in one unified
proceeding at the corporate level as opposed to individual
proceedings at the shareholder level. Sec. 6241; Eastern States
Cas. Agency, Inc. v. Commissioner, 96 T.C. 773, 775 (1991).
The Subchapter S Revision Act of 1982 was enacted shortly
after the Tax Equity and Fiscal Responsibility Act of 1982, Pub.
L. 97-248, 96 Stat. 324, which added the partnership audit and
litigation procedures (sections 6221 through 6233) to the Code.
Section 6244 provides that, except to the extent modified or made
inapplicable by regulations, the partnership provisions which
govern the judicial determination of partnership items and those
that relate to partnership items are generally made applicable to
subchapter S items. Eastern States Cas. Agency, Inc. v.
Commissioner, supra at 775-776; Hang v. Commissioner, 95 T.C. 74,
78 (1990). The partnership provisions concerning judicial
review, sections 6226 through 6228, are applicable to S
corporations. Hang v. Commissioner, supra at 79.
Section 6226(f) provides in pertinent part as follows:
Scope of Judicial Review.--A court with which a
petition is filed in accordance with this section shall
have jurisdiction to determine all partnership items of
the partnership for the partnership taxable year to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011