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determination that he was a partner because (1) P
claimed on prior returns that he was a partner, and (2)
P received a Schedule K-1 from the partnership for the
year in issue and failed to file with his return a Form
8082, Notice of Inconsistent Treatment or
Administrative Adjustment Request, notifying respondent
of his position that he was not a partner. Therefore,
the applicable period of limitations under sec. 6229,
I.R.C., for R to assess the deficiency has not expired.
Held, further, we have jurisdiction to consider
partner-level adjustments in a Rule 155 computation.
R. Todd Luoma, for petitioners.
Kathryn K. Vetter, for respondent.
BEGHE, Judge: On December 17, 1999, respondent issued
petitioners an “affected items” notice of deficiency of $11,826
in their 1992 Federal income tax. The deficiency is attributable
to inclusion in the income of petitioner Rodney J. Blonien (Mr.
Blonien) of his distributive share of cancellation of debt (COD)
income of Finley, Kumble, Wagner, Heine, Underberg, Manley,
Myerson & Casey (Finley Kumble), a law partnership that had
become insolvent.
Petitioners allege assessment is barred by the 3-year period
of limitations provided in section 6501(a)1 because Mr. Blonien
was not a partner of Finley Kumble subject to the alternative
period of limitations provided by section 6229 for the assessment
1Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year at issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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