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allocation of partnership-level losses among partners, i.e., a
partnership item, but was instead challenging the suballocation
of that item between a partner and his bankruptcy estate, i.e.,
an affected item, it follows that we exercised jurisdiction to
redetermine a deficiency attributable to an affected item, even
though an FPAA had not been issued and partnership-level
proceedings were not initiated. Therefore, the jurisdictional
holding in Katz supports rather than contradicts the position
taken by this Court in Roberts v. Commissioner, supra.
In GAF Corp. & Subs. v. Commissioner, 114 T.C. 519, 528
(2000), we granted the taxpayer’s motion to dismiss for lack of
jurisdiction. We concluded that a notice of deficiency is
invalid where it is based on affected items and is issued before
the completion of the related partnership-level proceedings. In
that case, an FPAA was issued which proposed partnership
adjustments, and a partnership-level proceeding had been
initiated and was pending in the Tax Court. A notice of
deficiency was issued on the same date as the FPAA, see Rhone-
Poulenc Surfactants v. Commissioner, 114 T.C. 533, 536 (2000),
and before the partnership-level proceedings were completed.
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