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By notice of deficiency, respondent disallowed the NOL
carryovers petitioners deducted on their jointly filed income tax
returns for tax years 1991 through 1994, to the extent that the
carryovers were attributable to the prepetition partnership
losses. Respondent contends that the prepetition partnership
losses belonged to and were properly reportable by Mr. Katz’
bankruptcy estate, as opposed to Mr. Katz individually. No
notice of final partnership administrative adjustment (FPAA)
under section 6226 has been issued to any of the partnerships
with respect to taxable year 1990.
Discussion
Petitioners’ first challenge to respondent’s disallowance of
the NOL carryovers is that respondent was without authority to
make such a determination. Accordingly, petitioners move that
the case be dismissed for lack of jurisdiction. In the event the
matter is not resolved on jurisdictional grounds, petitioners
move for summary judgment on the ground that the prepetition
partnership losses were properly reported by Mr. Katz in his
individual capacity. Respondent has filed a cross-motion for
summary judgment with respect to this issue. We begin with
petitioners’ jurisdictional argument.
A. Petitioners’ Motion To Dismiss for Lack of Jurisdiction
Petitioners argue that respondent’s notice of deficiency is
invalid to the extent it disallows the NOL carryovers petitioners
deducted for the tax years at issue. Petitioners contend that
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