Greenberg Brothers Partnership #12, a.k.a. Lone Wolf McQuade Associates, and Richard M. Greenberg, Tax Matters Partner - Page 13

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          joint partnership interest) and a spouse who is deemed a partner            
          because a joint return was filed.6  Cf. Estate of Callaway v.               
          Commissioner, T.C. Memo. 1998-99.                                           
               In addition, we note that the policy behind the bankruptcy             
          rule is inapplicable to Mrs. Locke's situation.  The purpose for            
          the bankruptcy rule is to prevent the automatic stay of 11 U.S.C.           
          section 362(a)(8) (1988), from impeding the TEFRA proceeding.               
          See Computer Programs Lambda, Ltd. v. Commissioner, 89 T.C. at              
          203.  Title 11 U.S.C. section 362(a)(8) (1988), generally                   
          provides that the filing of a bankruptcy petition operates as a             
          stay of the commencement or continuation of a proceeding before             
          the Tax Court concerning the debtor.  See Kieu v. Commissioner,             
          105 T.C. 387, 391 (1995).  Since other partners are unaffected by           
          the resolution of a debtor-partner's bankruptcy proceeding, the             
          TEFRA proceeding should not be delayed pending the outcome of a             
          single partner's bankruptcy proceeding.  Mrs. Locke is not a                
          debtor in a bankruptcy proceeding.  Consequently, there is no               
          concern about an automatic stay, and thus no reason to convert              

               6                                                                      
                    Indeed, the relevant regulatory provisions utilize                
          similar language in their treatment of a partner with a direct              
          interest (e.g., through community property) and an indirect                 
          interest (through filing of a joint return).  Compare sec.                  
          301.6231(a)(12)-1T(a), Temporary Proced. & Admin. Regs., supra              
          ("Thus, both spouses are permitted to participate in                        
          administrative and judicial proceedings."), with sec.                       
          301.6231(a)(2)-1T(a)(1), Temporary Proced. & Admin. Regs., 52               
          Fed. Reg. 6790 (Mar. 5, 1987) ("Thus, the spouse who files a                
          joint return with a partner will be permitted to participate in             
          administrative and judicial proceedings.").                                 




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