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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.
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