River City Ranches #1 Ltd., Leon Shepard, Tax Matters Partner - Page 19

                                       - 108 -                                         
          Leasing II v. Commissioner, 97 T.C. 575, 576 (1991); Maxwell v.              
          Commissioner, 87 T.C. 783, 787-788 (1986).                                   
               Section 622622 authorizes the judicial review of FPAAs and              
          provides in pertinent part:                                                  
               SEC. 6226(f) SCOPE OF JUDICIAL REVIEW.-A court with                     
               which a petition is filed in accordance with this                       
               section shall have jurisdiction to determine all                        
               partnership items of the partnership for the                            
               partnership taxable year to which the notice of final                   
               partnership administrative adjustment relates and the                   
               proper allocation of such items among the partners.                     
               [Emphasis added.]                                                       
               Section 6231(a) defines the term “partnership item” as                  
          follows:                                                                     
               (3) PARTNERSHIP ITEM.-The term “partnership item”                       
               means, with respect to a partnership, any item required                 
               to be taken into account for the partnership’s taxable                  
               year under any provision of subtitle A to the extent                    
               regulations prescribed by the Secretary provide that,                   
               for purposes of this subtitle, such item is more                        
               appropriately determined at the partnership level than                  
               at the partner level.  [Emphasis added.]                                
               As defined, partnership items can only be those items                   
          arising under subtitle A of the Internal Revenue Code.  Section              


               22  The Taxpayer Relief Act of 1997 (Relief Act 1997), 111              
          Stat. 788, 1026, Pub. L. 105-34, sec. 1238(b)(1), amended sec.               
          6226(f) and expanded this Court’s jurisdiction in partnership                
          level proceedings to include the applicability of “any penalty,              
          addition to tax, or additional amount” related to the adjustment             
          of a partnership item.  This amendment to sec. 6226(f) is                    
          effective only for partnership taxable years ending after Aug. 5,            
          1997, and does not apply to the years at issue in the instant                
          case.  Relief Act 1997 sec. 1238(c), 111 Stat. 1027.  Moreover,              
          as noted supra note 21, sec. 6621(c) previously was repealed by              
          the OBRA 1989, effective for taxable years the due date of the               
          returns for which (determined without extensions) is after Dec.              
          31, 1989.                                                                    





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