James D. Barber and Betty L. Barber - Page 49



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          partnership.  Respondent then mailed the notices of final                   
          partnership administrative adjustment; Winer commenced the                  
          partnership action at docket No. 14535-89; and, ultimately, the             
          Court entered decision, pursuant to the Commissioner’s motion               
          under Rule 248(b), which completely sustained the Commissioner’s            
          FPAA determinations.                                                        
               Petitioners allege that they were never informed of the                
          settlement offer by respondent at the time that the offer was               
          made.  Respondent counters that the settlement offer was made to            
          Winer as Whitman’s tax matters partner and that any failure by              
          Winer to inform all of the limited partners of the existence of             
          the offer does not require respondent to renew the offer.  We               
          agree with respondent.                                                      
               There is no statutory or regulatory provision that obligates           
          respondent, when making a settlement offer to the tax matters               
          partner of a TEFRA partnership, to provide notice to the                    
          partnership’s limited partners of the fact of such offer.  To the           
          contrary, section 6223(g) provides, in part, that “the tax                  
          matters partner of a partnership shall keep each partner informed           
          of all administrative and judicial proceedings for the adjustment           
          at the partnership level of partnership items.”  In other words,            
          to the extent that Whitman’s limited partners were entitled to              
          notice regarding respondent’s making of the October 1988                    
          settlement offer, the duty to provide such notice lay with Winer            






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