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For example, if the FPAA is issued after the 3-year period
of limitations provided in section 6229(a), and none of the
special rules of section 6229(c) apply, each partner will be
obligated separately to assert its own section 6501 statute of
limitations defense in the TEFRA partnership-level proceeding.
In this circumstance, each partner's proof will require the court
to adjudicate items that have no relevance to the partnership;
e.g., whether the partner filed a return, whether the partner
executed a valid section 6501(c)(4) extension that did not expire
before the FPAA was issued, whether the partner omitted from
gross income an amount (including nonpartnership income) properly
5(...continued)
Neither the Secretary nor the taxpayer will be
permitted to raise nonpartnership items in the course
of a partnership proceeding nor may partnership items,
except to the extent they become nonpartnership items
under the rules, be raised in proceedings relating to
nonpartnership items of a partner.
The separate statute of limitations applicable to
nonpartnership items of a partner may have expired when
the computational adjustment of a partner's tax
liability attributable to a FPAA or final court
decision is made. In such case neither the Secretary
(to reduce a refund) nor a partner (to reduce an
assessment) may raise nonpartnership items in
determining the partner's tax liability resulting from
such computational adjustment. [H. Conf. Rept. 97-
760, at 611 (1982), 1982-2 C.B. 600, 668.]
See also Maxwell v. Commissioner, 87 T.C. 783, 788 (1986)
(Court cannot consider partnership items in a partner's personal
case or nonpartnership items in the partnership proceeding).
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