Charles G. and Elizabeth A. Fargo - Page 2

                                        - 2 -                                         
          discretion under section 6330 in refusing to compromise the                 
          remainder.                                                                  
                                     Background                                       
               Petitioners filed joint returns for the tax years 1983 and             
          1984.  For 1983, they claimed a Schedule E loss of $30,767                  
          attributable to their interest in a partnership named Jackson &             
          Associates (Jackson).  For 1984, they claimed Schedule E losses             
          of $2,749 attributable to their interest in Jackson and $28,996             
          attributable to their interest in another partnership, Smith &              
          Asher Associates (Smith/Asher).  Both Jackson and Smith/Asher               
          were partners in other partnerships:  Jackson in a partnership              
          called Wilshire West Associates (Wilshire), and Smith/Asher in a            
          partnership called Redwood Associates (Redwood).  All these                 
          partnerships were subject to the TEFRA provisions of sections               
          6221-6234.1                                                                 
               These partnerships were all affiliated with a group of tax             
          shelters known as the Swanton Coal Programs, a coal mining                  
          venture which produced much more litigation than coal.  See,                
          e.g., Smith v. Commissioner, 92 T.C. 1349 (1989); Beagles v.                

               1 Section references are to the Internal Revenue Code of               
          1986, as amended.  Secs. 6221 to 6234 were added by the Tax                 
          Equity and Fiscal Responsibility Act (TEFRA) of 1982, Pub. L. 97-           
          248, sec. 402(a) 96 Stat. 648, and provide for the determination            
          of partnership items at the partnership, rather than at the                 
          individual partner, level.  The Commissioner is generally unable            
          to assess a deficiency relating to a TEFRA partnership item until           
          after the completion of partnership-level proceedings.  See                 
          generally Katz v. Commissioner, 116 T.C. 5, 8 (2001), revd. on              
          other grounds 335 F.3d 1121 (10th Cir. 2003).                               




Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011