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describes situations in which the deficiency procedures provided
for in subchapter B, chapter 63, subtitle F of the Code will
apply to deficiencies attributable to affected items.
This Court has held that in a partnership level proceeding
we lack jurisdiction over issues relating to affected items. We
further held that those issues are to be resolved in separate
proceedings involving the partners after the partnership level
proceeding has been completed either as a matter of computational
adjustment or as the subject of subsequent notices of
deficiencies to the partners pursuant to section 6230(a). N.C.F.
Energy Partners v. Commissioner, 89 T.C. 741, 746 (1987).
Petitioner in its Notice of Objection has conceded that
correction of partnership items generates overpayments that are
affected items within the meaning of section 6231(a)(5). We
agree. For the foregoing reasons, we conclude that this Court
does not have jurisdiction in this partnership level proceeding
over affected items such as the alleged overpayments in question
and the refund of such alleged overpayments.
We note that after the Tax Court enters its decision in this
case and if it decides there is a casualty loss greater than that
claimed on the partnership return and the allocation thereof, the
statute contemplates that the individual partners should not have
to file claims for refund. That is, in the case of any
overpayments by a partner attributable to a partnership item or
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