Allen Family Foods, Inc. - Page 17




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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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