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affected items requiring factual determinations at the individual
partner level. See N.C.F. Energy Partners v. Commissioner, supra
at 745; see also sec. 301.6231(a)(5)-1T(d), Temporary Proced. &
Admin. Regs., 52 Fed. Reg. 6790 (Mar. 5, 1987).
In N.C.F. Energy Partners v. Commissioner, supra, a case
similar in many respects to the case before the Court, the
Commissioner issued a notice of final partnership administrative
adjustment with respect to N.C.F. Energy Partners (NCF)
determining adjustments to NCF's tax returns for 1982 and 1983.
The FPAA was accompanied by an explanation of items stating that
the Commissioner intended to assert additions to tax (including
additions to tax under section 6661) at the individual partner
level. The tax matters partner filed a petition for readjustment
on NCF's behalf contesting both adjustments to partnership items
and the various additions to tax mentioned in the explanation of
items. The Commissioner moved to dismiss for lack of
jurisdiction and to strike the allegations in the petition
pertaining to additions to tax on the ground that such items
constituted affected items that could be resolved only at the
individual partner level following the completion of partnership
level proceedings.
The Court agreed with the Commissioner that the additions to
tax in question were affected items that could not be raised in
the partnership level proceeding. With regard to additions to
tax for negligence, the Court stated in pertinent part:
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