- 5 -
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.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011