10
allocation of such items among the partners”. Sec. 6226(f). In
such a proceeding, the Court’s jurisdiction extends only to
redetermining adjustments of partnership items. N.C.F. Energy
Partners v. Commissioner, 89 T. C. 741, 743 (1987) Maxwell v.
Commissioner, supra at 787-788.
2. Definition of Partnership Items
Section 6231(a)(3) defines a partnership item as:
(3) Partnership item.–-The term “partnership item”
means, with respect to a partnership, any item required
to be taken into account for the partnership’s taxable
year under any provision of subtitle A to the extent
regulations prescribed by the Secretary provide that,
for purposes of this subtitle, such item is more
appropriately determined at the partnership level than
at the partner level.
Only items that are “required to be taken into account for the
partnership’s taxable year under *** subtitle A” can be
partnership items. Dial USA, Inc. v. Commissioner, 95 T.C. 1, 3
(1990). Of these items, only those that are “more appropriately
determined at the partnership level” are partnership items.
N.C.F. Energy Partners v. Commissioner, supra at 743. Section
301.6231(a)(3)-1, Proced. & Admin. Regs., identifies those items
that are partnership items because they are more appropriately
determined at the partnership level. Some items that are
required to be taken into account by the partnership under
subtitle A are not partnership items because the items are more
appropriately considered at the partner level.
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