Gary F. and Helen Overstreet - Page 4

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               In a unified partnership proceeding, pursuant to sections              
          6221 through 6231, partnership items are treated separately from            
          a partner’s deficiency proceedings involving nonpartnership                 
          items.  Generally, respondent is required to give partners notice           
          of the beginning of a partnership proceeding and the FPAA                   
          resulting from such proceeding.  See sec. 6223(a).  Respondent              
          was not, however, required to provide such notice to Mr.                    
          Overstreet because he had less than a 1-percent interest in the             
          profits of Finley, Kumble, a partnership with more than 100                 
          partners.  See sec. 6223(b).  Further, the TMP’s failure to                 
          notify Mr. Overstreet of the partnership proceeding does not                
          affect the applicability of the partnership proceeding or the               
          FPAA to Mr.  Overstreet.  See sec. 6230(f).                                 
               This Court does not have jurisdiction to determine                     
          partnership items in a partner level proceeding.  See secs. 6221,           
          6226; Brookes v. Commissioner, 108 T.C. 1, 6 (1997).  The                   
          expiration of the period of limitations for issuance of the FPAA            
          is an affirmative defense that must be raised in a partnership              
          level proceeding.  See Crowell v. Commissioner, 102 T.C. 683, 693           
          (1994); Genesis Oil & Gas Ltd. v. Commissioner, 93 T.C. 562, 565            
               Petitioners, citing Barbados #7 Ltd. v. Commissioner, 92               
          T.C. 804 (1989), as authority, contend that they are,                       
          nonetheless, entitled to contest the timeliness of the FPAA                 

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