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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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