Crystal Beach Development of Destin Ltd. - Page 4




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               Petitioner filed an objection to respondent's motion arguing           
          that the motion should be denied on the grounds that:  (1)                  
          Respondent's motion was not timely filed; (2) the FPAA includes             
          an adjustment based on the penalty prescribed in section 6662(a);           
          and (3) section 6221 was amended in 1997 to clarify that                    
          additions to tax and penalties are to be determined in                      
          partnership-level proceedings.                                              
               This matter was called for hearing at the Court's motions              
          session in Washington, D.C.  Counsel for respondent appeared at             
          the hearing and presented oral argument in support of the pending           
          motion.  Counsel for petitioner filed a written statement                   
          pursuant to Rule 50(c) in lieu of attendance at the hearing.                
          Discussion                                                                  
               The Tax Court is a court of limited jurisdiction, and we may           
          exercise our jurisdiction only to the extent authorized by                  
          Congress.  See Naftel v. Commissioner, 85 T.C. 527, 529 (1985).             
          The Court's jurisdiction may be challenged by either party, or by           
          the Court sua sponte, at any stage of the proceedings.  See Smith           
          v. Commissioner, 96 T.C. 10, 13-14 (1991), and cases cited                  
          therein.  Consistent with this principle, we reject petitioner's            
          assertion that respondent's motion to dismiss and to strike                 
          should be denied on the ground that it was not timely filed.                
               Petitioner further asserts that respondent's motion should             
          be denied because the FPAA included an adjustment “charging” the            





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