Nicholas P. Ruggiero and Annette M. Ruggiero - Page 8




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          the individual partner level.  Id. at 745.  The Taxpayer Relief             
          Act of 1997, Pub. L. 105-34, sec. 1238, 111 Stat. 1026, amended             
          sections 6221, 6226, and 6230 to provide that the partnership-              
          level proceeding is now to include the determination of the                 
          applicability of any penalty or addition to tax relating to an              
          adjustment to a partnership item for partnership tax years ending           
          after August 5, 1997.                                                       
          Statute of Limitations                                                      
               The notice of deficiency relating to the affected items here           
          was timely issued.  Section 6229(d) provides that the mailing of            
          an FPAA suspends the running of the 3-year limitations period for           
          assessing a partnership item or affected item for the period                
          during which an action may be brought for judicial review of an             
          FPAA (and, if an action is brought, until the decision of the               
          court has become final) and for 1 year thereafter.  A petition              
          for review of the Arid Land FPAA3 was filed, and the decision was           
          entered by this Court on June 4, 1999.                                      
               Under section 6229(d)(2), the running of the 3-year period             
          of limitations for assessing a deficiency attributable to a 1983            
          Arid Land partnership item or affected item was suspended for 1             


               3Petitioner testified that he never received a copy of the             
          FPAA.  Respondent introduced evidence that a copy was sent by               
          certified mail to petitioners' last known address.  The validity            
          of a properly mailed FPAA is not contingent on receipt by a                 
          "notice" partner.  Sec. 6223(a);  Crowell v. Commissioner, 102              
          T.C. 683, 692 (1994).                                                       





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