Crop Associates - Page 5

                                        - 5 -                                         
               A.  Appropriateness to Partnership Proceeding                          
                    1.  Principal Provisions of the Code                              
               This case was commenced under the provisions of subchapter C           
          (sections 6221 through 6234), chapter 63, subtitle F of the                 
          Internal Revenue Code (subchapter C).  Section 6221 provides:               
          “Except as otherwise provided in this subchapter, the tax                   
          treatment of any partnership item shall be determined at the                
          partnership level.”  The term “partnership item” is defined in              
          section 6231(a)(3):                                                         
               The term “partnership item” means, with respect to a                   
               partnership, any item required to be taken into account                
               for the partnership’s taxable year under any provision                 
               of subtitle A to the extent regulations prescribed by                  
               the Secretary provide that, for purposes of this                       
               subtitle, such item is more appropriately determined at                
               the partnership level than at the partner level.                       
               Section 6226(f) delineates our jurisdiction to determine               
          partnership items:                                                          
               A court with which a petition is filed in accordance                   
               with this section shall have jurisdiction to determine                 
               all partnership items of the partnership for the                       
               partnership taxable year to which the notice of final                  
               partnership administrative adjustment relates and the                  
               proper allocation of such items among the partners.                    
               A “computational adjustment” (computational adjustment) is             
          the change in the tax liability of a partner that properly                  
          reflects the treatment under subchapter C of a partnership item.            
          Sec. 6231(a)(6).  Generally, the deficiency procedures set forth            
          in subchapter B, chapter 63, subtitle F of the Internal Revenue             
          Code (the deficiency procedures) do not apply to the assessment             
          and collection of any computational adjustment.  See sec.                   

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011