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assessed within 3 years of the later of the filing of the
partnership return or its due date.”20
e. Congressional Intent
Because respondent’s position introduces partner specific
considerations into the period of limitations issue, petitioner
believes that respondent’s position introduces the aggregate
theory where Congress meant the entity theory to prevail. As
stated,21 although Congress enacted the TEFRA partnership
provisions to allow a unified proceeding to determine partnership
items, the TEFRA partnership provisions blend the entity and
aggregate theories. Petitioner has failed to convince us that
20In 2 Willis et al., Partnership Taxation, par. 20.08[1]
(6th ed. 1999), it is explained:
Section 6229(a) provides the general rule that the
limitation period for the assessment of tax
attributable to partnership items or affected items for
a partnership taxable year “shall not expire” before
three years after the later of the date on which the
partnership return was filed or the due date (without
extensions) for filing the return. This language
pointedly is different from the language in the general
limitation statute that states that tax “shall be
assessed within 3 years” from the stated date. The
effect of this provision, therefore, is to retain the
normal three-year limitation period extended for
partnership or affected items to at least three years
(or more in some circumstances) after the filing of the
partnership return. Consequently, the Service has the
longer of the period from the filing of the partner’s
return or the filing of the partnership return within
which to assess tax with respect to partnership items
and affected items.
21See discussion supra pp. 10-11.
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