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believes that, prior to expiration of the section 6501(e)(1)(A)
period, the running of that period was suspended by section
6229(d) when respondent mailed the FPAA to the tax matters
partner. Respondent believes that the section 6501(e)(1)(A)
period remains suspended today.
C. Analysis
1. Introduction
Two views have long competed regarding the basic nature of a
partnership. The “aggregate theory” considers a partnership to
be no more than an aggregation of individual partners. The
“entity theory” characterizes a partnership as a separate entity.
See generally 1 Bromberg & Ribstein, Bromberg and Ribstein on
Partnership, sec. 1.03 (1988). The substantive law with respect
to the income taxation of partners and partnerships is found in
subchapter K, chapter 1, subtitle A of the Internal Revenue Code
(subchapter K). Authorities on partnership taxation have stated
that subchapter K does not espouse either the aggregate or the
entity theory of partnerships but rather blends the two theories.
See 1 McKee et al., Federal Taxation of Partnerships and
Partners, par. 1.02 (2d ed. 1990). That blending of the
aggregate and entity theories is a primary source of uncertainty
in the application of subchapter K, see id. at par. 1.02[3], and,
no doubt, is responsible, at least in part, for our description
of the provisions of subchapter K as “distressingly complex and
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