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governing statutory provisions, set forth in sections 6241-6245,
generally provide that the proper tax treatment of S corporation
items shall be determined in a single, unified proceeding at the
corporate (as opposed to individual shareholder) level. See
Eastern States Cas. Agency, Inc. v. Commissioner, 96 T.C. 773,
775 (1991); Dial, Inc. v. Commissioner, 95 T.C. 1, 1-2 (1990).
In this regard, section 6245 provides:
SEC. 6245. * * * the term "subchapter S item" means any
item of an S corporation to the extent regulations
prescribed by the Secretary provide that, for purposes
of this subtitle, such item is more appropriately
determined at the corporate level than at the
shareholder level.
It is well settled that items requiring factual
determinations at the individual shareholder level; i.e., so-
called affected items, are beyond the scope of the Court's
jurisdiction in a corporate level proceeding. See sec. 6244
(making certain procedural provisions of the unified partnership
audit and litigation procedures set forth in secs. 6221-6234
applicable to S corporations); N.C.F. Energy Partners v.
Commissioner, 89 T.C. 741, 744 (1987); see also Hang v.
Commissioner, 95 T.C. 74 (1990).
3(...continued)
beginning after Dec. 31, 1996, by the Small Business Job
Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110
Stat. 1781.
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