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The parties further agree that Mrs. Scarfia's status as a
partner for TEFRA purposes derives solely from the joint income
tax returns she filed with Mr. Scarfia. Sec. 6231(a)(2); sec.
301.6231(a)(2)-1T(a)(1), Temporary Proced. & Admin. Regs., 52
Fed. Reg. 6790 (Mar. 5, 1987). It is also undisputed that by the
filing of joint returns Mrs. Scarfia became jointly and severally
liable for any taxes due thereon. Sec. 6013(d)(3). The parties
diverge, however, on whether the conversion of Mr. Scarfia's
partnership items to nonpartnership items pursuant to the
bankruptcy rule has any impact upon our jurisdiction over Mrs.
Scarfia in this proceeding.
Mrs. Scarfia posits that Mr. Scarfia's status as a debtor in
a bankruptcy proceeding has a twofold effect upon her. First,
she contends that any partnership items that could be adjusted in
the TEFRA proceeding that would affect her tax liability are
converted to nonpartnership items, thereby removing the basis for
this Court's subject matter jurisdiction under section 6226(f)
with regard to her. Second, she argues that because her tax
liability is no longer "determined in whole or in part by taking
into account directly or indirectly partnership items of the
partnership", she ceases to be a partner within the meaning of
section 6231(a)(2)(B) and, consequently, must no longer be within
the personal jurisdiction of this Court under section 6226(c).
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