Ridge L. Harlan and Marjory C. Harlan - Page 12




                                       - 12 -                                         
          of gross income anywhere on the tax return.7  As a result, we               
          must look through the various forms, etc., attached to the                  
          taxpayer’s basic tax return form in order to identify the                   
          components of gross income that must be added together in order             
          to determine the total amount of gross income stated in the                 
          taxpayer’s tax return.  It has long been accepted that, for these           
          purposes, the information return of the taxpayer’s properly                 
          identified 1st-tier partnership is treated as part of the                   
          taxpayer’s tax return.  But the 1st-tier partnership’s                      
          information return suffers from the same “defect” in that we must           
          look through the various forms, etc., attached to the 1st-tier              
          partnership’s information return in order to identify the                   
          components of gross income that must be added together in order             
          to determine the total amount of gross income stated in the 1st-            
          tier partnership’s information return.  Every explanation that              
          has been drawn to our attention, or that we have discovered, as             
          to why we must treat the properly identified 1st-tier                       
          partnership’s information return as part of the taxpayer’s tax              
          return applies with equal force to treating the properly                    
          identified 2d-tier partnership’s information return as part of              
          the 1st-tier partnership’s information return.                              
               Accordingly, we agree with petitioners’ conclusion.                    



               7As is the case in the Harlan’s docket, even if the taxpayer           
          does state such an amount and clearly labels it as such, that may           
          not be the correct amount for purposes of sec. 6501(e)(1)(A),               
          even if it is the correct amount for other purposes.                        



Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011