- 8 -
Regs. It follows, therefore, that the determinations of the
amounts at risk with respect to partnership liabilities are also
"nonpartnership items" within the meaning of section 6231(a)(4).
Accordingly, for purposes here we refer to paragraph one of the
original settlement agreement as the settlement of the
partnership items provision and the remaining paragraphs
referring to "at risk" as nonpartnership items settlement
provisions.
TEFRA--Consistent settlement
The present dispute involves section 6224(c)(2) and section
301.6224(c)-3T, Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6787 (Mar. 5, 1987).8
Section 6224(c)(2) provides, in part:
Other partners have right to enter into consistent
agreements.--If the Secretary enters into a settlement
agreement with any partner with respect to partnership items
for any partnership taxable year, the Secretary shall offer
to any other partner who so requests settlement terms for
the partnership taxable year which are consistent with those
contained in such settlement agreement. * * *
In construing section 6224(c)(2) our task is to give effect
to the intent of Congress. We begin with the statutory language,
which is the most persuasive evidence of the statutory purpose.
8
No court has yet ruled upon the effect of sec.
6224(c)(2) and sec. 301.6224(c)-3T. Temporary Proced. & Admin.
Regs., 52 Fed. Reg. 6787 (Mar. 5, 1987). See, e.g., Pilie v.
United States, 56 F.3d 686 (5th Cir. 1995); Slovacek v. United
States, 40 Fed. Cl. 828 (1998); Vulcan Oil Tech. Partners v.
Commissioner, 110 T.C. 153 (1998); H Graphics/Access, Ltd.
Partnership v. Commissioner, T.C. Memo. 1992-345.
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