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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. Sec. 6226(f); Sparks v.
Commissioner, 87 T.C. 1279, 1284 (1986); Maxwell v.
Commissioner, 87 T.C. 783, 789 (1986). Partnership items include
each partner’s proportionate share of the partnership’s aggregate
items of income, gain, loss, deduction, or credit. Sec.
6231(a)(3); sec. 301.6231(a)(3)-1(a)(1)(i), Proced. & Admin.
Regs.
We must stress that our role in a TEFRA proceeding is
limited by section 6226(f) to the determination and allocation of
partnership items. Section 6226(f) provides:
A court with which a petition is filed in accordance
with this section shall have jurisdiction to determine all
partnership items of the partnership for the partnership
taxable year to which the notice of final partnership
administrative adjustment relates, [and] the proper
allocation of such items among the partners * * *
We have no authority under section 6226(f) to determine any
affected item or the tax liability of any partner. Crop
Associates-1986 v. Commissioner, 113 T.C. 198, 202 (1999); Crop
Associates-1986 v. Commissioner, T.C. Memo. 2000-216.
An “affected item” means any item to the extent that such
item is affected by a partnership item. Sec. 6231(a)(5); White
v. Commissioner, 95 T.C. 209, 211 (1990). Section 6230(a)(2)
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Last modified: May 25, 2011