- 7 -
state of the Court’s docket. Cases are calendared for trial on
the next calendar set after the Answer is filed. See Rule 131.
Among the motions filed on January 28, 2002, was a Motion in
Limine in which petitioner argued that the Court lacked
jurisdiction in this case because the HOMC was subject to TEFRA
proceedings under section 6231(a)(1)(B)(i). Attached to that
motion was a copy of the order dismissing Arivada’s bankruptcy
petition. In petitioner’s posttrial briefs filed in this case,
he argues that dismissal of the bankruptcy proceeding should have
the same effect as if the proceeding had never occurred.
Respondent relies on the following provision of section
301.6231(c)-7T(a), Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6793 (Mar. 5, 1987):
(a) Bankruptcy. The treatment of items as
partnership items with respect to a partner named as a
debtor in a bankruptcy proceeding will interfere with
the effective and efficient enforcement of the internal
revenue laws. Accordingly, partnership items of such a
partner arising in any partnership taxable year ending
on or before the last day of the latest taxable year of
the partner with respect to which the United States
could file a claim for income tax due in the bankruptcy
proceeding shall be treated as nonpartnership items as
of the date the petition naming the partner as debtor
is filed in bankruptcy.
The regulation was adopted under section 6231(c), giving the IRS
the authority to determine that certain items that would
otherwise be treated as partnership items may be treated as
nonpartnership items. See Computer Programs Lambda, Ltd. v.
Commissioner, 89 T.C. 198, 204 (1987); Fein v. Commissioner, T.C.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011