T.C. Memo. 2000-170
UNITED STATES TAX COURT
CRYSTAL BEACH DEVELOPMENT OF DESTIN LTD.,
WATERS EDGE BUILDING COMPANY, TAX MATTERS PARTNER,
Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 18413-99. Filed May 24, 2000.
R issued a notice of final partnership
administrative adjustment (FPAA) to P, the
partnership’s tax matters partner, for the taxable
years 1995 and 1996. The FPAA was accompanied by an
"Explanation of Affected Items" stating that a penalty
under I.R.C. sec. 6662(a) would be “charged”. P filed
a petition for readjustment contesting adjustments to
partnership items and the accuracy-related penalty
under I.R.C. sec. 6662(a). R filed a motion to dismiss
for lack of jurisdiction and to strike the portion of
the petition contesting the accuracy-related penalty.
Held: The Court lacks jurisdiction to review the
accuracy-related penalty in this partnership-level
proceeding. See N.C.F. Energy Partners v.
Commissioner, 89 T.C. 741 (1987). Held, further, the
amendments made by the Taxpayer Relief Act of 1997,
Pub. L. 105-34, sec. 1238(a), 111 Stat. 1026, which
provide that penalties will be determined in
partnership-level proceedings, are effective for
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