Crystal Beach Development of Destin Ltd. - Page 5




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          penalty prescribed in section 6662(a).  We disagree.  Although              
          the Court's jurisdiction in a partnership proceeding is                     
          contingent on the issuance of a valid FPAA and a timely-filed               
          petition for readjustment, see Transpac Drilling Venture 1982-22            
          v. Commissioner, 87 T.C. 874 (1986), the FPAA does not define the           
          scope of the Court's jurisdiction.  See, e.g., Powell v.                    
          Commissioner, 96 T.C. 707, 712-713 (1991).  Rather, as previously           
          stated, the Court's jurisdiction is prescribed by statutory                 
          provisions, to which we now turn.                                           
          The Court's jurisdiction to review adjustments to a                         
          partnership return is governed by the unified partnership audit             
          and litigation procedures set forth in sections 6221 through                
          6234.  See Tax Equity and Fiscal Responsibility Act of 1982                 
          (TEFRA), Pub. L. 97-248, sec. 402(a), 96 Stat. 648.  Pursuant to            
          the TEFRA provisions, which apply with respect to all taxable               
          years of a partnership beginning after September 3, 1982, the tax           
          treatment of any partnership item generally is determined in a              
          single proceeding at the partnership level.  See Sparks v.                  
          Commissioner, 87 T.C. 1279, 1284 (1986); Maxwell v. Commissioner,           
          87 T.C. 783, 789 (1986); see also sec. 6226(f).  Partnership                
          items include each partner's proportionate share of the                     
          partnership's aggregate items of income, gain, loss, deduction,             
          or credit.  See sec. 6231(a)(3); sec. 301.6231(a)(3)-1(a)(1)(i),            
          Proced. & Admin. Regs.                                                      





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