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in separate proceedings with each partner. See, e.g., sec. 6221;
H. Conf. Rept. 97-760 (1982), supra at 599, 1982-2 C.B. 662.4
Our role in a subchapter C proceeding is limited by section
6226(f) to the determination and allocation of partnership items.
Section 6226(f) provides:
A court with which a petition is filed in
accordance with this section shall have jurisdiction to
determine all partnership items of the partnership for
the partnership taxable year to which the notice of
final partnership administrative adjustment relates and
the proper allocation of such items among the partners.
We have no authority under section 6226(f) to determine any
affected item or the tax liability of any partner.5 See, e.g.,
Crop Associates-1986 v. Commissioner, 113 T.C. 198 (1999). In
Dynamic Energy, Inc. v. Commissioner, 98 T.C. 48 (1992), an
entity level proceeding involving an S corporation, we held that
we lacked jurisdiction in such a proceeding to consider a defense
arising at the shareholder level and personal to the wife of a
shareholder. We have held similarly in subchapter C proceedings.
4 A “partnership item” is any item required to be taken
into account for the partnership’s taxable year to the extent
that the regulations provide that such item is more appropriately
determined at the partnership level rather than at the partner
level. Sec. 6231(a)(3). A “nonpartnership item” is any item
which is not, or is not treated as, a partnership item. See sec.
6231(a)(4). An “affected item” means any item to the extent that
such item is affected by a partnership item. See sec.
6231(a)(5).
5 See sec. 6230(a)(2), describing situations in which the
deficiency procedures provided for in subchapter B, chapter 63,
subtitle F of the Code will apply to deficiencies attributable to
affected items.
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