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investigation of Mr. Hoyt resulted in the conversion of his
partnership items in the Hoyt partnerships into nonpartnership
items as a matter of law. Therefore, Mr. Hoyt's TMP designation
was terminated and any extensions he signed on behalf of the Hoyt
partnerships were invalid.
Petitioners base their position on the interrelationship of
section 6231(c), section 301.6231(c)-5T, Temporary Proced. &
Admin. Regs., 52 Fed. Reg. 6793 (Mar. 5, 1987), and section
301.6231(a)(7)-1(l)(1)(iv), Proced. & Admin. Regs.
Our understanding of petitioners' argument is as follows:
(1) The Secretary may determine in situations enumerated in
section 6231(c)(1) that "to treat items as partnership items will
interfere with the effective and efficient enforcement of * * *
[the internal revenue laws]", sec. 6231(c)(2) (emphasis added);
(2) once such a determination is made by the Secretary, such
partner's partnership items "shall be treated as nonpartnership
items", id. (emphasis added); (3) by regulation, the Secretary
has determined that "The treatment of items as partnership items
with respect to a partner under criminal investigation for
violation of the internal revenue laws relating to income tax
will interfere with the effective and efficient enforcement of
the internal revenue laws", sec. 301.6231(c)-5T, Temporary
Proced. & Admin. Regs., supra (emphasis added); and (4)
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