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computational adjustment. See sec. 301.6231(a)(6)-1T, Temporary
Proced. & Admin. Regs. (discussing computational adjustments,
including when the deficiency procedures apply), 52 Fed. Reg.
6790-6791 (Mar. 5, 1987). Section 301.6231(a)(3)-1, Proced. &
Admin. Regs., implements section 6231(a)(3) by providing a list
of partnership items. Equitable recoupment is not among the
items on that list, and, therefore, it is not a partnership item.
For a defense of equitable recoupment to succeed, however, the
partners will have to establish certain partnership items. Each
partner will also have to prove that he or she has made a time-
barred overpayment of tax, and that is not a partnership item.
See sec. 301.6231(a)(3)-1, Proced. & Admin. Regs.
Notwithstanding our limited jurisdiction under section 6226(f),
we may consider affirmative defenses in connection with the
determination of partnership items. See Rule 39; Columbia Bldg.
Ltd. v. Commissioner, 98 T.C. 607, 611 (1992) (considering
affirmative defense of statute of limitations in a section 6226
partnership case on the same basis as in a deficiency case);
Amesbury Apartments, Ltd. v Commissioner, 95 T.C. 227, 241 (1990)
(considering affirmative defense of statute of limitations in
section 6226 partnership case). Nevertheless, since certain
partner-level determinations are necessary elements to the
defense of equitable recoupment, consideration of that defense in
this proceeding seems inconsistent with our limited jurisdiction
under section 6226(f). In light of respondent’s position,
discussed in the next section of this report, that equitable
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