Rhone Poulenc Surfactants and Specialties, L.P. - Page 3




                                        - 3 -                                         
          matter before the Court is petitioner’s motion for summary                  
          judgment, based on the claim that the period of limitations for             
          making assessments of tax has expired.                                      
               The Internal Revenue Code prescribes no period during which            
          TEFRA partnership-level proceedings, which begin with the mailing           
          of the notice of final partnership administrative adjustment,               
          must be commenced.  However, if partnership-level proceedings are           
          commenced after the time for assessing tax against the partners             
          has expired, the proceedings would be of no avail because the               
          expiration of the period for assessing tax against the partners,            
          if properly raised, would bar any assessments attributable to               
          partnership items.                                                          
               Generally, in order to be a party to a partnership action, a           
          partner must have an interest in the outcome.  If the statute of            
          limitations applicable to a partner bars the assessment of tax              
          attributable to the partnership items in issue, that partner                
          would generally not have an interest in the outcome.  See sec.              
          6226(c) and (d).3  However, we have held that a partner may                 


               3Sec. 6226(c) and (d) provides:                                        
               SEC. 6226(c). Partners Treated as Parties.--If an action is            
          brought under subsection (a) or (b) with respect to a partnership           
          for any partnership taxable year--                                          
                    (1) each person who was a partner in such partnership             
               at any time during such year shall be treated as a party to            
               such action, and                                                       
                    (2) the court having jurisdiction of such action shall            
               allow each such person to participate in the action.                   
                                                             (continued...)           





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011