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Petitioners contend that section 301.6231(a)(5)-1T,
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6790 (Mar. 5,
1987), neither mentions section 469 nor suggests that the
characterization of losses as passive or nonpassive be treated as
an affected item. From such silence petitioners conclude that
the section 469 issue involves a nonpartnership item within the
meaning of section 6231(a)(4), to which section 6229 does not
apply. Petitioners state in this regard that "Since the
partnership items adjusted by the decision [i.e., the amount of
losses] are irrelevant to the nature, duration, or quality of
petitioners' participation in the partnership's activities, the
[section] 469 issue cannot be an affected item under section
6231(a)(5)."
Although the affected items regulations do not expressly
mention section 469, we do not think that the regulations are
meant to provide an exhaustive list of such items. See, e.g.,
Jenkins v. Commissioner, 102 T.C. at 555 (holding that section
104(a) classification by partner of a guaranteed payment is an
affected item).
Furthermore, we question petitioners' assumption in their
memorandum that "an item on a partner's return can be an affected
item if and only if the partner's treatment of that item is
dependent, in the first instance, on a partnership item
adjustment." (Emphasis added.) Petitioners have cited no
authority for this narrow interpretation of the scope of section
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