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278, 280-281 (1991); see S. Rept. 97-640, at 25 (1982), 1982-2
C.B. 718, 729. The provisions of sections 6221 through 6233
which relate to assessing deficiencies with respect to
partnership items and judicial determination of partnership items
are (except to the extent modified or made inapplicable in the
regulations) extended to and made applicable to subchapter S
items. Sec. 6244.
With regard to petitions filed by a tax matters partner, if
an action is brought with respect to a partnership for any
partnership taxable year, each person who was a partner in the
partnership at any time during the year shall be treated as a
party to the action. Sec. 6226(c). For purposes of sections
6221 through 6233, the term “partner” means a partner in the
partnership and any other person whose income tax liability under
subtitle A is determined in whole or in part by taking into
account directly or indirectly partnership items of the
partnership. Sec. 6231(a)(2).
Accordingly, any person whose income tax liability under
subtitle A is determined in whole or in part by taking into
account directly or indirectly subchapter S items of the S
corporation is a party to the corporate level proceeding. Sec.
6244. For purposes of the Code, the term “person” includes
corporations. Sec. 7701(a)(1). The built-in gains tax is a tax
imposed by subtitle A of the Code. See sec. 1374. It is also a
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