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the tax matters partner of the Dickinson partnership, for each of
the taxable years 1982 through 1985. A copy of each FPAA was
also mailed to petitioners.
The FPAA’s advised petitioners of adjustments that
respondent proposed to make to the partnership returns (Forms
1065) filed by Dickinson. Specifically, the FPAA’s disallowed
all deductions and credits claimed by Dickinson in connection
with its plastics recycling activities for 1982 through 1985.
Each of the FPAA’s also advised petitioners that they could agree
to the adjustments or, if they did not agree, how review could be
obtained by the tax matters partner, or by notice partners such
as petitioner, in this Court. Each of the FPAA’s also included a
page entitled “For Information Purposes Only”, which provided as
follows:
It has been determined that the partnership has
improperly taken deductions or credits based on the
overvaluation of assets and based on positions taken
for which substantial authority was lacking. It has
also been determined that the transactions were entered
into for tax motivated reasons and adjustments to the
partnership items were due to negligence or intentional
disregard of rules and regulations. Penalties based on
the above transactions, including but not limited to
Internal Revenue Code sections 6659, 6661, 6621(c), and
6653(a)(1)&(2), are applicable at the individual
partner level and will be raised in separate
proceedings at the partner level following the present
partnership proceedings.
A Court will not have jurisdiction to consider
these partner penalties raised in a petition with
respect to this Notice of Final Partnership
Administrative Adjustment (FPAA) pursuant to Internal
Revenue Code sections 6226(f) and 6231(a)(3). Thus,
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