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partner in such partnership at any time during the year in issue
shall be treated as a party to such action. However, section
6226(d)(1)(A) provides, in pertinent part, that section 6226(c)
shall not apply to a partner after the day on which the
partnership items of such partner for the particular partnership
taxable year become nonpartnership items by reason of one of the
events described in section 6231(b). Section 6231(b)(1)(D)
provides, in part, that for purposes of the TEFRA provisions the
partnership items of a partner shall become nonpartnership items
as of the date a change occurs under subsection (c) of section
6231.
Section 6231(c) provides that in certain special enforcement
areas the Secretary may provide by regulations for the conversion
of a partner's partnership items into nonpartnership items.
Computer Programs Lambda, Ltd. v. Commissioner, 89 T.C. 198, 203
(1987); see H. Conf. Rept. 97-760, at 610 (1982), 1982-2 C.B.
600, 667. Pursuant to this grant of authority, the Secretary
promulgated the so-called bankruptcy rule which provides as
follows:
(a) Bankruptcy. The treatment of items as partnership
items with respect to a partner named as a debtor in a
bankruptcy proceeding will interfere with the effective and
efficient enforcement of the internal revenue laws.
Accordingly, partnership items of such a partner arising in
any partnership taxable year ending on or before the last
day of the latest taxable year of the partner with respect
to which the United States could file a claim for income tax
due in the bankruptcy proceeding shall be treated as
nonpartnership items as of the date the petition naming the
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