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Section 6231(a)(7) defines a TMP as either: (1) A general
partner designated TMP as provided in regulations; or (2) if no
general partner has been so designated, the general partner
having the largest profits interest in the partnership at the
close of the tax year.
With the exception of SGE 83-2's 1983 partnership return,
Mr. Hoyt was designated TMP on the returns for the Hoyt
partnerships for all of their post-1982 taxable years pursuant to
section 6231(a)(7)(A). See sec. 301.6231(a)(7)-1(c), Proced. &
Admin. Regs. Though no partner was designated TMP on SGE 83-2's
1983 return, Mr. Hoyt signed SGE 83-2's 1983 tax return as a
general partner.
It is clear from the record that Mr. Hoyt was the sole
general partner of SGE 83-2 in 1983 and therefore was the general
partner having the largest profits interest in the partnership at
the close of the 1983 taxable year pursuant to section
6231(a)(7)(B). On the basis of the record, we find that Mr. Hoyt
was TMP of SGE 83-2 for the 1983 taxable year pursuant to section
6231(a)(7)(B).
We will now examine each of petitioners' arguments in turn.
5. Validity of Section 301.6231(c)-5T, Temporary Proced. &
Admin. Regs.
Petitioners contend that the second and third sentences of
section 301.6231(c)-5T, Temporary Proced. & Admin. Regs., supra,
are invalid and that the initiation of the criminal tax
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