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50-percent interest in partnership profits, losses, and capital,
petitioners' distributive share of Executive Inn's ordinary
income was 50 percent for both 1994 and 1995, $24,387 ($24,386.50
rounded to the nearest dollar) and $62,141, respectively.
Executive Inn has therefore satisfied the "same share"
requirement of section 6231(a)(1)(B)(i)(II).
Based on the foregoing, we hold that Executive Inn falls
within the small partnership exception under section
6231(a)(1)(B)(i), and is therefore not covered by the TEFRA
partnership procedures. Accordingly, the extended time period
for filing a petition for redetermination under section
6226(b)(1) of the TEFRA partnership procedures does not apply in
this case.
Petitioners argue that Congress could not have intended that
the small partnership exception would apply under these
circumstances. According to petitioners, respondent is abusing
the small partnership exception by using it as an excuse to
abandon a complex "partnership level examination and then to
issue a deficiency notice at the partner level (i.e., effectively
limiting challenge to the 'modifications' of partnership
income)". We disagree. Section 6231(a)(1)(B) simply codifies
Congress' intent to exempt simple partnerships, like Executive
Inn, from the TEFRA partnership procedures. See McKnight v.
Commissioner, 99 T.C. at 185; H. Conf. Rept. 97-760 (1982), 1982-
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