Crop Associates - Page 8

                                        - 8 -                                         
          recoupment is an affected item, we need not further discuss that            
                    3.  The Partners’ Remedies                                        
               Intervenor argues that, unless we conclude that equitable              
          recoupment is a partnership item, the partners will be barred               
          from defending against any computational adjustment on account of           
          subsections (a)(1) and (c)(1) and (4) of section 6230, which,               
          according to intervenor, (1) render the deficiency procedures               
          inapplicable to computational adjustments except in the case of a           
          deficiency attributable to affected items requiring partner-level           
          determinations and (2) restrict refund suits to claims arising              
          out of erroneous computations and the like.                                 
               In respondent’s memorandum in support of his objection to              
          the motion, respondent states:  “The defense of equitable                   
          recoupment is an affected item requiring determinations at the              
          individual partner level.”  With respect to the facts of this               
          case, respondent states in his objection:                                   
                    Any defense of equitable recoupment requires an                   
               inquiry at the individual partner level to determine                   
               whether there is a deficiency in income tax with                       
               respect to an individual partners [sic] that would                     
               result (by means of computational adjustment) from the                 
               Court’s determination at the partnership level the                     
               [sic] for the year at issue and if so, whether there is                
               any amount to be recouped in a subsequent year.                        
               In Powell v. Commissioner, T.C. Memo. 1997-560, the                    
          taxpayers petitioned the Court in response to the Commissioner’s            
          notices determining deficiencies attributable to certain affected           
          items (the affected items were additions to tax).  Previously,              
          the Commissioner had made computational adjustments, which had              

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

Last modified: May 25, 2011