- 10 - In the instant case, an FPAA was not issued and partnership- level proceedings were not initiated. Respondent has not proposed any adjustments to partnership items and agrees that he is bound by the partnership’s determinations of partnership items. Under those circumstances, the outcome at the partnership level is acceptance of the partnership’s treatment of its partnership items, and a notice of deficiency regarding affected items can be the basis for our jurisdiction. See Roberts v. Commissioner, 94 T.C. 853 (1990). The seminal case in this area is Maxwell v. Commissioner, 87 T.C. 783 (1986). In Maxwell, the potential for a duplication of procedures prompted this Court to limit our jurisdiction over the deficiencies relating to affected items: “Affected items depend on partnership level determinations, cannot be tried as part of the personal tax case, and must await the outcome of the partnership proceeding.” Id. at 792. We have previously considered this language and have appropriately declined to afford it an interpretation that is broader than what was required for the disposition of the jurisdictional issue in that case: Petitioners rely on our statement in Maxwell that “Affected items depend on partnership level determinations, [and] cannot be tried as part of the personal tax case, and must await the outcome of a partnership proceeding.” Maxwell v. Commissioner, supra at 792. Petitioners have taken that statement out of context. In Maxwell, respondent had determined deficiencies and additions to tax by disallowingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011