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122. Neither party has requested a further evidentiary hearing.
Petitioners claimed a pass-through loss and an investment
credit from SLA on their 1982 Federal income tax return.
Respondent disallowed the loss and credit and determined a
deficiency in petitioners' 1982 Federal income tax and additions
to tax under sections 6653(a)(1) and 66591 in the respective
amounts of $27,552, $1,377.60, and $8,265.60. Respondent also
determined that petitioners are liable for an addition to tax
under section 6653(a)(2) in the amount of 50 percent of the
interest due on the deficiency and that the increased interest
provisions of section 6621(c) applied. Assuming that the
adjustments pertaining to SLA are properly before this Court in
this proceeding, petitioners and respondent have reached an
agreement as to the deficiency and additions to tax. The issue
remaining is whether respondent’s adjustments to the loss and
credit from SLA and the additions to tax resulting therefrom are
properly before the Court in this proceeding. If SLA was formed
prior to September 4, 1982, it is not subject to the partnership
procedural provisions enacted as sections 6221 through 6231 by
section 402(a) of the Tax Equity & Fiscal Responsibility Act of
1982 (TEFRA), Pub. L. 97-248, 96 Stat. 648, and respondent’s
adjustments are properly before the Court in this proceeding. On
1 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the year in issue.
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