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that the commitment fees paid to Century Industries were actually
earned by Kanter and assigned by him to Century Industries.
Respondent now concedes that half the fees were for services
provided by Weisgal. Kanter contends that before Century
Industries would consider investing in a proposed venture,
Century Industries charged commitment fees for evaluating the
proposed investment, and, thus, the fees are income of the
partnership. Additionally, for the 1983, 1984, and 1986 taxable
years, Kanter maintains that the Court does not have subject-
matter jurisdiction to decide the deficiencies related to the
commitment fees determined in the notices of deficiencies because
he contends for those years Century Industries is subject to the
partnership audit and litigation provisions found in subchapter C
of chapter 63 of subtitle F of the Internal Revenue Code. These
provisions, sections 6221 through 6233 (collectively referred to
for convenience as the TEFRA partnership provisions), are
generally applicable to specified partnerships and other entities
filing partnership returns for taxable years beginning after
September 4, 1982. Tax Equity and Fiscal Responsibility Act of
1982 (TEFRA), Pub. L. 97-248, sec. 407(a)(1), (3), 96 Stat. 324,
648.
Under the TEFRA partnership provisions, the tax treatment of
partnership items must be determined at the partnership level.
Sec. 6221. A partnership item must be considered solely in the
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