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personal service income and were subject to self-employment tax.
Petitioners duly petitioned this Court to redetermine the
determined deficiencies in their 1997 and 1998 income taxes.
Before the scheduled trial in the instant case, this Court
issued its decision in Grigoraci v. Commissioner, T.C. Memo.
2002-202 (Grigoraci I), involving similar issues relating to
petitioners’ 1996 taxable year.2 In Grigoraci I, this Court
concluded, among other things, that the self-employment tax
determined by respondent, insofar as it was attributable to self-
employment tax on the S corporation’s distributive share of
GTWP’s income, was an “affected item” requiring a “partner-level
determination” pursuant to section 6230(a)(2). Because the
notice of deficiency in Grigoraci I was issued before the close
of the partnership proceedings, this Court dismissed for lack of
jurisdiction so much of petitioners’ case as related to that
affected item.3 Id.
2 The trial in Grigoraci I took place in April 2001 before
petitioners filed their petition in the instant case, which
apparently explains why the instant case was not consolidated
with the three dockets that were consolidated in Grigoraci I.
3 In Grigoraci I, unlike the instant case, the deficiency
determined by respondent was also partly attributable to self-
employment tax on wages that the S corporation had reported
paying to Mr. Grigoraci. In Grigoraci I, this Court held that
this discrete portion of the deficiency was not attributable to
an “affected item” and that consequently this Court had
jurisdiction to review it pursuant to sec. 6213. This Court held
(continued...)
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