- 8 - agreement with the TMPs of the partnerships in which petitioners had an interest before starting collection activity at their level. The Appeals officer determined that the delay in petitioners’ learning of their snowballing liability is a matter they should address with the TMPs of their partnerships. We agree. TEFRA contemplates that it is generally a TMP’s responsibility to keep his partners informed.3 Sec. 6233(g); sec. 301.6223(g)-1T, Temporary Proced. & Admin. Regs., 52 Fed Reg. 6785 (Mar. 5, 1987). We decline to decide that the failure of the IRS to contact petitioners sooner is reason to compel respondent to accept a settlement of approximately 7 percent of petitioners’ interest liability. We do agree with petitioners that there is something disconcerting about their not receiving notice of the ramifications for them of the Swanton coal litigation until 1999. Indeed, respondent’s determination notes that petitioners may have received no correspondence at all from their TMPs since 3 One part of respondent’s determination regarding the long delay between Kelley and assessment does seem mistaken. The Appeals officer found that “no link had been established” between the Swanton Coal Programs and petitioners’ tax liabilities. This statement is fundamentally in error if it was intended to mean that Kelley did not at least indirectly affect petitioners’ tax liabilities. Nevertheless, it appears to be dictum. Regardless of the interrelation of the partnerships involved in the Swanton Programs, respondent is correct that legal responsibility for more promptly notifying petitioners and trying to resolve their partnerships’ tax issues lay ultimately with their TMPs.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011