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TEFRA requires that respondent notify partners of the
beginning and end of partnership-level administrative
proceedings. Sec. 6223(a). If and when an FPAA is issued as to
those proceedings, the “tax matters partner”, generally a person
or entity designated as such by the partnership under applicable
regulations or, more commonly, the general partner in control of
the partnership, sec. 6231(a)(7); Chimblo v. Commissioner, supra
at 121, may contest the FPAA within 90 days of its issuance by
filing a petition for readjustment of “partnership items” in this
Court, the Court of Federal Claims, or the appropriate Federal
District Court. Sec. 6226(a). If the tax matters partner does
not file such a petition by the close of that 90-day period, then
any notice partner or 5-percent group may file a petition within
the next 60 days. Sec. 6226(b)(1). Once an action for
readjustment of partnership items is commenced by either the tax
matters partner or a notice partner, any partner with an interest
in the outcome of that action may participate in it. Sec.
6226(c) and (d).
In the context of TEFRA, a “partnership item” is any item
that must be taken into account for the partnership’s taxable
year to the extent that regulations prescribe it as an item that
is more appropriately determined at the partnership level. Sec.
6231(a)(3); Maxwell v. Commissioner, 87 T.C. 783, 789 (1986).
Section 301.6231(a)(3)-1, Proced. & Admin. Regs., sets forth a
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