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Additions to Tax
Year Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6661
1982 $450 * $2,617
1983 25 ** –--
* 50 percent of the interest due on $10,467.
** 50 percent of the interest due on $503.
The issues for decision are: (1) Whether, for 1982 and
1983, petitioners are liable for the additions to tax under
section 6653(a)(1) and (2) for negligence, and (2) whether, for
1982, petitioners are liable for the addition to tax under
section 6661 for a substantial understatement of tax. The issues
in this case relate to the participation of Anthony B. Serfustini
(petitioner) as a limited partner in a partnership known as
Blythe Jojoba II Research, Ltd. (Blythe II or the partnership).2
2 Petitioners have attempted to place at issue in this
case the underlying deficiencies attributable to partnership
losses they claimed during the years at issue. As described
hereafter, the deficiencies determined by respondent in
connection with Blythe II are partnership-level adjustments, sec.
6231(a)(3), that were upheld by this Court in the case of Utah
Jojoba I Research v. Commissioner, T.C. Memo. 1998-6. This Court
has repeatedly held that it lacks jurisdiction, in a partner-
level proceeding involving nonpartnership items (which is the
case herein), to redetermine a deficiency, or any portion
thereof, attributable to the tax treatment of a partnership item.
E.g., Saso v. Commissioner, 93 T.C. 730, 734 (1989); Maxwell v.
Commissioner, 87 T.C. 783, 788 (1986); see also Powell v.
Commissioner, 96 T.C. 707, 712 (1991); Woody v. Commissioner, 95
T.C. 193, 208 (1990); Palmer v. Commissioner, T.C. Memo. 1992-
352, affd. 4 F.3d 1000 (11th Cir. 1993); English v. Commissioner,
T.C. Memo. 1990-662.
Petitioners also contend that the issuance of the notices of
deficiency in this case was barred by the statute of limitations
(continued...)
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