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certain claimed partnership losses. At the time of the
issuance of the notice of deficiency, however, a
partnership proceeding had been commenced, but no FPAA
had as yet been issued. Under those circumstances, the
additions to tax were affected items and had to await
the outcome of the partnership proceeding. They could
not be determined as part of the personal income tax
case. [Roberts v. Commissioner, supra at 860.]
Thus, Maxwell is distinguishable from this case because here
there are no partnership-level proceedings underway, and
respondent has accepted the partnership’s treatment of
partnership items.
In Jenkins v. Commissioner, 102 T.C. 550, 553 (1994), we
stated:
Generally, respondent is prohibited from assessing a
deficiency regarding a partnership item without first
attempting to adjust the item in a partnership level
proceeding and issuing a notice of final partnership
administrative adjustment (FPAA). Sec. 6225(a). Once
the partnership level proceeding is complete, or if no
partnership level proceeding is necessary, then a
partner’s individual income tax for the related tax
period can be affected by the partnership item which
was reported and/or adjusted at the partnership level.
* * * [Emphasis added.]
We decided that partnership-level proceedings were not required
because the Commissioner was “not questioning the treatment of
the partnership item at the partnership level”, and because the
deficiency related to an affected item reported on the taxpayers’
return which is within the subject matter jurisdiction of this
Court in a partner’s deficiency proceeding. Id. at 556. We also
observed: “Respondent * * * may accept the partnership’s
characterization of the item and only question the position of a
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