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97-248, sec. 402(a), 96 Stat. 324, 648 (TEFRA partnership
provisions).6
For income tax purposes, partnerships are not taxable
entities. See sec. 701 (reflecting the view that a partnership
is no more than an aggregation of its members). Before TEFRA,
adjustments with respect to partnership items were made to each
partner’s income tax return at the time (and if) that return was
examined. See H. Conf. Rept. 97-760, at 599 (1982), 1982-2 C.B.
600, 662. An administrative settlement or judicial determination
of a disagreement between a partner (or partners) and the
Commissioner bound only the parties thereto and did not bind
other partners or bind the Commissioner with respect to other
partners. See id. The TEFRA partnership provisions provide that
all partnership items are to be determined at the partnership
level rather than at the partner level. See sec. 6221.
If a computational adjustment results in a deficiency in a
partner’s tax, the partner is accorded the right to challenge the
adjustment pursuant to the deficiency procedures provided for in
subtitle F, chapter 63, subchapter B of the Internal Revenue Code
only if and to the extent the change in the partner’s tax
liability cannot be made without making one or more partner-level
6The TEFRA partnership provisions have been amended since
their enactment in 1982 and now constitute secs. 6221 through
6234.
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