- 9 -
788 (1986). We do not have jurisdiction over a partnership
proceeding until a valid notice of final partnership
administrative adjustment (FPAA) has been issued and the tax
matters or notice partner has timely petitioned this Court for a
readjustment of the partnership items. See Rule 240(c); see also
Consolidated Cable, Ltd. v. Commissioner, T.C. Memo. 1990-657,
affd. without published opinion 995 F.2d 222 (5th Cir. 1993). An
“affected item” (as defined by section 6231(a)(5), which includes
additions to tax based on partnership items) cannot be determined
before the final resolution of the partnership item. GAF Corp.
v. Commissioner, 114 T.C. , ___ (2000) (slip op. at 13);
Maxwell v. Commissioner, supra at 790-791.
Prior to TEFRA, items corresponding to those which TEFRA
defines as partnership and affected items were all litigated in a
deficiency proceeding under section 6212. See Maxwell v.
Commissioner, supra at 787. In this case, respondent did not
issue a FPAA for the year at issue in this case; rather
respondent issued a notice of deficiency under section 6212. The
parties agree that the items set forth in the notice of
deficiency would be either partnership or affected items, if the
TEFRA partnership provisions apply.
Under section 407(a)(1) of TEFRA, 96 Stat. 670, section 402
“shall apply to partnership taxable years beginning after the
date of the enactment of this Act.” TEFRA was enacted on
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011