- 5 -
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.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011