Agri-Cal Venture Associates, Frederick H. Behrens, Tax Matters Partner, et al. - Page 41




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                    Any partnership may authorize any person to extend                
               the period described in section 6229(a) with respect to                
               all partners by filing a statement to that effect with                 
               the service center with which the partnership return is                
               filed.  The statement shall--                                          
                    (a)  Provide that it is an authorization for a                    
               person other than the tax matters partner to extend the                
               assessment period with respect to all partners,                        
                    (b) Identify the partnership and the person being                 
               authorized by name, address, and taxpayer                              
               identification number,                                                 
                    (c)  Specify the partnership taxable year or years                
               for which the authorization is effective, and                          
                    (d)  Be signed by all persons who were general                    
               partners at any time during the year or years for which                
               the authorization is effective.                                        
               Respondent concedes that DV-85 filed no statement complying            
          with section 301.6229(b)-1T, Temporary Proced. & Admin. Regs.,              
          supra.  Respondent argues that, nevertheless, Mr. Schreiber was             
          authorized by DV-85 in writing to execute the DV-85 Form 872-P              
          for 1985 and that such authorization satisfies section                      
          6229(b)(1)(B).                                                              
               Section 6229(b)(1)(B) does not specify how a person other              
          than the TMP is to be authorized by the partnership in writing to           
          enter into an agreement to extend the 3-year period.  We have               
          concluded that section 301.6229(b)-1T, Temporary Proced. and                
          Admin. Regs., is permissive, not mandatory, in nature.  See                 
          Bugaboo Timber Co. v. Commissioner, 101 T.C. 474, 487 (1993)                
          (with respect to an S corporation, adopting the conclusions of              
          Amesbury Apartments, Ltd., and Cambridge Research & Dev. Group,             





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