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We held that the partnership was subject to the TEFRA procedures
stating:
As a partnership formed after September 3, 1982,
with its fiscal year ending December 31, 1982, ACTF was
subject to the partnership audit and litigation
procedures (sec. 6221 et seq.), for its 1982 taxable
year. Respondent’s statutory notice of deficiency is,
therefore, invalid. Petitioners’ cross-motion to
dismiss for lack of jurisdiction will be granted.
* * * [Id. at 1414; emphasis added.]
In Weiss v. Commissioner, 88 T.C. 1036 (1987), we dismissed
for lack of jurisdiction because the notice of deficiency, issued
prior to completion of the TEFRA partnership procedures, was
“ineffectual.”
In Boyd v. Commissioner, 101 T.C. 365 (1993), we held that a
prior decision of this Court in a deficiency case that was based
on disallowance of a partnership loss was not res judicata in a
subsequent case. We explained as follows:
The doctrine of res judicata bars litigating a
claim if it was or could have been litigated in a prior
case. Commissioner v. Sunnen, 333 U.S. 591, 597-598
(1948); Trost v. Commissioner, 95 T.C. 560, 566 (1990).
As discussed above, petitioners’ $120,000 partnership
loss deduction was not properly included in the first
notice of deficiency. Maxwell v. Commissioner, 87 T.C.
at 788. The first notice of deficiency was invalid,
id., and the decision entered was a nullity,
Billingsley v. Commissioner, 868 F.2d 1081, 1084-1085
(9th Cir. 1989), revg. an order of this Court. Thus,
litigation of the claimed $120,000 partnership loss is
not barred by res judicata. [Id. at 371-372; emphasis
added; fn. ref. omitted.]
In Dubin v. Commissioner, 99 T.C. 325 (1992), we dismissed
for lack of jurisdiction because the notice of deficiency was
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