Foothill Ranch Company Partnership, Buck Equities, Ltd., Tax Matters Partner - Page 8

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          obligations that were unrelated to its obligations to the county            
          (e.g., the construction of affordable housing units).  As a                 
          result, the construction of buildings and improvements to real              
          property was necessary to fulfill FRC's obligations under the               
          sales agreements, and these obligations were not completed within           
          the 1988 tax year.  Accordingly, we conclude that respondent's              
          position relating to this issue was not substantially justified.            
               B.  Net Worth                                                          
               To be a "prevailing party", a party must meet EAJA's net               
          worth requirements.  Sec. 7430(c)(4)(A)(iii).  Specifically, a              
          party that is a corporation or partnership may not have a net               
          worth of more than $7,000,000 or more than 500 employees.  EAJA,            
          28 U.S.C. sec. 2412(d)(2)(B) (1994).  Petitioner and respondent             
          have differing views regarding who must meet the net worth                  
          requirements.  We reject both parties' contentions.                         
               Petitioner contends that we must look to the partnership               
          entity, FRC, to determine whether the net worth requirements are            
          met.  This partnership proceeding, however, is governed by the              
          procedural rules of the Tax Equity and Fiscal Responsibility Act            
          of 1982 (TEFRA), Pub. L. 97-248, sec. 402(a), 96 Stat. 324, 648,            
          codified as secs. 6221-6233.  The partners, rather than the                 
          partnership entity, are the parties in a TEFRA proceeding.  See             
          secs. 6226(c), 6228(a)(4); Rule 247; Chef's Choice Produce, Ltd.            
          v. Commissioner, 95 T.C. 388, 395 (1990); see also Southwest                
          Marine, Inc. v. United States, 43 F.3d 420 (9th Cir. 1994)                  

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