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underlying the TEFRA amendments (quoted above) includes a clear
description of present law, which states that penalties can only
be asserted against a partner through the application of the
deficiency procedures following the completion of the
partnership-level proceeding. See H. Conf. Rept. 105-220, at
685. Further, Congress unambiguously provided that the TEFRA
amendments would apply prospectively only--the amendments are
effective for taxable years ending after August 5, 1997--and do
not apply to the taxable years in issue. Simply put,
petitioner's assertion that Congress enacted the TEFRA amendments
described above as a clarification of existing law is incorrect.
In sum, we hold that the Court lacks jurisdiction over the
accuracy-related penalty that petitioner has attempted to place
in dispute in this partnership-level proceeding. The penalty may
be contested at the individual partner level only following the
completion of partnership-level proceedings. Accordingly, we
shall grant respondent's Motion To Dismiss For Lack Of
Jurisdiction And To Strike With Respect To Penalties/Additions To
Tax.
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Last modified: May 25, 2011