- 7 -
301.6231(a)(5)-1T(d), Temporary Proced. & Admin. Regs., 52 Fed.
Reg. 6790 (Mar. 5, 1987).2
In N.C.F. Energy Partners v. Commissioner, supra, a case
similar in many respects to the case now before the Court, the
Commissioner issued an FPAA to N.C.F. Energy Partners (NCF)
determining adjustments to NCF's returns for 1982 and 1983. The
FPAA was accompanied by an explanation of items which stated that
the Commissioner intended to assert additions to tax (including
additions to tax for negligence) at the individual partner level.
The tax matters partner filed a petition for readjustment on
NCF's behalf contesting both adjustments to partnership items and
the various additions to tax mentioned in the explanation of
items. The Commissioner moved to dismiss for lack of
jurisdiction and to strike the allegations in the petition
pertaining to additions to tax on the ground that such items
constituted affected items that could be resolved only at the
2 In the Omnibus Budget Reconciliation Act of 1989, Pub. L.
101-239, sec. 7721, 103 Stat. 2395, Congress consolidated the
additions to tax for negligence and substantial understatement
under new sec. 6662 entitled "Imposition of Accuracy-Related
Penalty". Although respondent never amended sec. 301.6231(a)(5)-
1T(d), Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6790 (Mar.
5, 1987), to include accuracy-related penalties within the
definition of the term "affected items", we are satisfied that
Congress intended for accuracy-related penalties to be treated
similarly to additions to tax; i.e., as affected items. See H.
Conf. Rept. 101-386, at 652 (1989).
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