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respondent's authority to issue notices of computational
adjustment rather than deficiency notices to petitioners for
their taxable years 1987 and 1988 upon the completion of the
partnership level proceeding. Respondent never sought to
recharacterize petitioners' distributive share of partnership
losses for 1987 and 1988 as passive--petitioners had already
reported them as such on their returns for those years. Rather,
the computational adjustments for 1987 and 1988 simply reflect
the partnership-level adjustments set forth in the Decision for
those years. Since the amount of losses in the hands of
petitioners is conclusively a partnership item, sec.
301.6231(a)(3)-1(a)(1), Proced. & Admin. Regs., and since the
Decision had become final, such item was properly subject to
computational adjustment. Sec. 6225(a); Maxwell v. Commissioner,
87 T.C. at 788.
We have considered each of the remaining arguments of the
parties and, to the extent that they are not discussed herein,
find them to be either not germane or unconvincing.
In light of the foregoing, we hold that the section 469
issue involves an affected item, such that the statutory period
of limitations does not bar respondent from asserting additional
deficiencies and accuracy-related penalties for 1989 and 1990 as
set forth in the amended answer. Sec. 6229(a) and (d).
Accordingly, petitioners' motion for summary judgment is denied.
Factual issues (including the nature and extent of petitioners'
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