- 12 -
to regulatory exception, that spouses with a joint interest in a
partnership are treated as one person (or partner). We reasoned
that section 301.6231(a)(12)-1T(a), Temporary Proced. & Admin.
Regs., 52 Fed. Reg. 6793 (Mar. 5, 1987), supersedes that rule by
providing that, with certain narrow exceptions, spouses holding a
joint interest are to be treated as two distinct partners.5 We
concluded our analysis as follows:
Because the focus in the bankruptcy rule is limited to the
partner's status as a debtor in bankruptcy, we are compelled
here to look only to petitioner's status, since she is the
only partner before us, and, although she is a partner, she
is not in bankruptcy. Accordingly, we find the bankruptcy
rule to be inapplicable. [Dubin v. Commissioner, supra at
334.]
Because the taxpayer was unaffected by the conversion of her
husband's partnership items we held the notice of deficiency
issued to the taxpayer to be invalid.
We recognize that Dubin v. Commissioner, supra, involved a
joint partnership interest arising under community property law,
thereby implicating different statutory and regulatory provisions
than those here at issue. However, we see no meaningful
distinction between the provisions applicable to a spouse whose
partner status derives from community property principles (viz, a
5
Our decision in Dubin v. Commissioner, 99 T.C. 325,
333-334 (1992), reflected our interpretation that, for purposes
of the bankruptcy rule, the term "person" as used in sec.
6231(a)(12) is synonymous with the term "partner" in sec.
301.6231(a)(12)-1T(a), Temporary Proced. & Admin. Regs., 52 Fed.
Reg. 6793 (Mar. 5, 1987).
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