Marianne Hopkins - Page 17

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          indicate Congress’s intent to restrict relief in the case of a              
          closing agreement entered into before the effective date of                 
          section 6015.                                                               
               The final regulations provide an opportunity to claim                  
          section 6015 relief in the case of a section 6224(c) settlement             
          agreement which was entered into while the spouse was a party to            
          a pending partnership level (TEFRA) proceeding.13  Sec. 1.6015-             
          1(c)(2), Income Tax Regs.14  In doing so, the final regulations             
          provide an exception to the final and preclusive effect which we            
          have given section 6224(c) settlement agreements.15  The final              


               13Unified partnership procedures were enacted as part of the           
          Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Pub. L.           
          97-248, secs. 401-407, 96 Stat. 648-671.  Those procedures, as              
          amended, are contained in secs. 6221 through 6234.                          
               14We note that petitioner relies upon sec. 1.6015-1(c),                
          Proposed Income Tax Regs., 66 Fed. Reg. 3894 (Jan. 17, 2001),               
          which provides a similar exception for sec. 6224(c) settlement              
          agreements.  She contends that the closing agreement she signed             
          is a sec. 6224(c) settlement agreement relating to partnership              
          items.  Since we hold that petitioner is not precluded from                 
          claiming relief from the closing agreement without regard to this           
          contention, we need not decide whether petitioner’s closing                 
          agreement would be an agreement described in sec. 6224(c).                  
               15Sec. 6224(c) provides:                                               
                    SEC. 6224(c).  Settlement Agreement.--In the                      
               absence of a showing of fraud, malfeasance, or                         
               misrepresentation of fact--                                            
                         (1) Binds all parties.--A settlement                         
                    agreement between the Secretary and 1 or more                     
                    partners in a partnership with respect to the                     
                    determination of partnership items for any                        
                    partnership taxable year shall (except as                         
                                                             (continued...)           




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