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partner in Finley Kumble, and that the appropriate way to collect
additional amounts that might be owed by the Finley Kumble
partners was to determine the partnership items in a partnership-
level proceeding. See sec. 6221 (“the tax treatment of any
partnership item * * * shall be determined at the partnership
level” (Emphasis added.)). Had petitioners properly notified
respondent at the time they filed their 1992 return of their
position that Mr. Blonien was not a partner in Finley Kumble,
respondent could have converted the issue to a partner-level item
under section 6231(b)(1)(A) or could have addressed the issue, on
notice to petitioners, in a partnership-level proceeding under
section 301.6222(b)-2T(a), Temporary Proced. & Admin. Regs.,
supra, all within the period of limitations. By failing to file
a Form 8082 after receiving a Schedule K-1 from Finley Kumble,
petitioners accepted the position stated on the Schedule K-1 Mr.
Blonien received (that Mr. Blonien was a partner in Finley
Kumble), deprived respondent of an opportunity to address the
issue before the expiration of the period of limitations, and
thereby waived the right to take an inconsistent position on
their return.
It was petitioners’ conduct in claiming on prior returns
that Mr. Blonien was a partner, and in failing to notify
respondent timely of their position that Mr. Blonien was not a
partner, that deprived Mr. Blonien of the opportunity to have the
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