Estate of Robert W. Quick, Deceased, Esther P. Quick, Personal Representative, and Esther P. Quick - Page 5

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          respondent simply should have increased the amount of                       
          petitioners' distributive share of partnership losses flowing               
          from the favorable adjustments at the partnership level for 1989            
          and 1990.  Instead, respondent recharacterized petitioners'                 
          distributive share of the adjusted partnership losses (as well as           
          petitioners' share of partnership losses previously reported on             
          their returns for those years) as passive in notices of                     
          computational adjustment issued for 1989 and 1990, resulting in             
          deficiencies.  However, as an affected item requiring partner               
          level factual determinations, the recharacterization of such                
          losses was not properly subject to computational adjustment.                
          Sec. 6230(a)(2)(A)(i); see Estate of Quick v. Commissioner,                 
          supra.                                                                      
               Respondent argues that this Court correctly declined to                
          order refunds for overpayments of tax in our Opinion.  We agree,            
          but for the sake of clarity, we deem it necessary to discuss our            
          rationale in greater detail than we did previously.                         
               The Tax Court is a court of limited jurisdiction, and we may           
          exercise our jurisdiction only to the extent authorized by                  
          Congress.  See sec. 7442; Judge v. Commissioner, 88 T.C. 1175,              
          1180-1181 (1987); Naftel v. Commissioner, 85 T.C. 527, 529                  
          (1985).  We have jurisdiction to decide whether we have                     
          jurisdiction.  Pyo v. Commissioner, 83 T.C. 626, 632 (1984).                








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