Greenberg Brothers Partnership #12, a.k.a. Lone Wolf McQuade Associates, and Richard M. Greenberg, Tax Matters Partner - Page 9

                                        - 9 -                                         

          partnership proceedings does not have jurisdiction with respect             
          to Mr. Locke pursuant to section 6226(d)(1)(A) and (f).                     
               The parties further agree that Mrs. Locke's status as a                
          partner for TEFRA purposes derives solely from the joint income             
          tax returns she filed with Mr. Locke.  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. Locke became jointly and severally             
          liable for any taxes due thereon.  Sec. 6013(d)(3).  The parties            
          diverge, however, on whether the conversion of Mr. Locke's                  
          partnership items to nonpartnership items pursuant to the                   
          bankruptcy rule has any impact upon our jurisdiction over Mrs.              
          Locke in these proceedings.                                                 
               Mrs. Locke posits that Mr. Locke'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                 





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011