- 2 - Ps filed a motion to dismiss for lack of jurisdiction. Ps argue that a notice of deficiency which adjusts items affected by partnership items is invalid if it is issued before the completion of partnership-level proceedings. R concedes that we lack jurisdiction over the 1998 and 1999 taxable years. See Maxwell v. Commissioner, 87 T.C. 783 (1986). Held: The Tax Court has jurisdiction to redetermine the deficiency for 1997. Partnership-level proceedings were not initiated, a notice of final partnership administrative adjustment was not issued by R, and the 3-year period of limitations for assessment under sec. 6229(a), I.R.C., expired. R acknowledges that he cannot pursue a deficiency based on partnership-level adjustments for tax year 1997. As a result, the parties must accept the partnership-level treatment of partnership items. Roberts v. Commissioner, 94 T.C. 853 (1990). However, P-H’s basis in the partnership, while affected by partnership items, is not itself a partnership item. See Dial USA, Inc. v. Commissioner, 95 T.C. 1 (1990). Donald L. Feurzeig, for petitioners. G. Michelle Ferreira, for respondent. MEMORANDUM OPINION RUWE, Judge: The matter before the Court is petitioners’ motion to dismiss for lack of jurisdiction under Rule 53.1 Respondent determined deficiencies with respect to petitioners’ Federal income taxes for 1997, 1998, and 1999. Those deficiencies were based on respondent’s determination that 1Unless otherwise indicated, all section references are to the Internal Revenue Code applicable to the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011