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this context that petitioners contend that they are not liable
for additional interest because assessment of additional interest
under section 6621(c) without prior opportunity to contest such
assessment violates the Due Process Clause of the Fifth
Amendment.
In order to address petitioners’ contention, we need to step
back and briefly review the unified audit and litigation
procedures that apply to TEFRA partnerships (the TEFRA
procedures).
In general, the tax treatment of any partnership item is
determined at the partnership level pursuant to the TEFRA
procedures. The TEFRA procedures apply with respect to a
partnership's taxable years beginning after September 3, 1982.
See Sparks v. Commissioner, 87 T.C. 1279, 1284 (1986); Maxwell v.
Commissioner, 87 T.C. 783, 789 (1986). Partnership items include
the partnership aggregate and each partner's share of (1) items
of income, gain, loss, deduction, or credit of the partnership
and (2) other amounts determinable at the partnership level with
respect to partnership assets, investments, transactions and
operations necessary to enable the partnership or the partners to
determine the allowable investment credit. See sec. 6231(a)(3);
sec. 301.6231(a)(3)-1(a)(1)(i), (vi)(A), Proced. & Admin. Regs.
An affected item is defined in section 6231(a)(5) as any
item to the extent such item is affected by a partnership item.
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