Barry and Carolina Gustin - Page 5




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          partners.  Sec. 6221; H. Conf. Rept. 97-760, at 599 (1982), 1982-           
          2 C.B. 600, 662.3  Under section 6223(a), the Secretary shall               
          mail to each partner notice of the beginning of an administrative           
          proceeding at the partnership level, as well as an FPAA resulting           
          from any such proceeding.  A tax matters partner may, within 90             
          days after the date the FPAA is mailed, file a petition for the             
          readjustment of partnership items with the Tax Court, a District            
          Court, or the Claims Court.  Sec. 6226(a).  If a petition is                
          filed, the court has jurisdiction over all partnership items for            
          the year to which the FPAA relates, as well as the proper                   
          allocation of those items among the partners.  Sec. 6226(f).                
               Petitioners argue that we lack jurisdiction over the                   
          deficiency in this case, because an FPAA has not been issued and            
          a partnership-level proceeding has not been completed for                   
          Annona’s 1997 tax year.  Petitioners claim that the notice of               
          deficiency is invalid and that we cannot review, as part of our             
          normal deficiency procedures, adjustments respondent made to Mr.            
          Gustin’s basis in Annona nor respondent’s disallowance of losses            


               3See Roberts v. Commissioner, 94 T.C. 853, 859-860 (1990):             
               The purpose behind the enactment of section 6221 et                    
               seq. was to have one proceeding to determine all of the                
               partnerships items with respect to a partnership.  All                 
               of the partners would be eligible participants in such                 
               a proceeding, and the results of that proceeding would                 
               then be automatically applied to each of the partner’s                 
               returns without the necessity of further deficiency                    
               procedures.                                                            





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