Duane E. Hudspath - Page 6

                                        - 6 -                                         
          partnership proceeding”.  (Emphasis added.)) established that               
          respondent misled petitioner.  These facts, however, do not                 
          override the mandate of section 6221 that “the tax treatment of             
          any partnership item * * * shall be determined at the partnership           
          level.”  Maxwell v. Commissioner, 87 T.C. 783, 787-788 (1986).              
               Respondent complied with the partnership audit and                     
          litigation procedures and, upon completion of the partnership-              
          level proceeding, assessed a computational adjustment against               
          petitioner.  See secs. 6223, 6225(a)(2), 6230(a)(1), 6231(a)(6);            
          Brookes v. Commissioner, 108 T.C. 1, 5 (1997).  Petitioner had              
          the opportunity, in the partnership-level proceeding, to                    
          challenge the partnership items, but he failed to do so.                    
          Accordingly, petitioner is precluded from challenging those items           
          in this proceeding.  See secs. 6221, 6226; Brookes v.                       
          Commissioner, supra at 5-7.                                                 
               Petitioner further contends that respondent’s determinations           
          relating to this proceeding are untimely.  We disagree.                     
          Respondent sent petitioner the notice of deficiency relating to             
          this proceeding prior to the expiration of the period prescribed            
          by section 6229(d).  Sec. 6229(d)(1) and (2) (providing that the            
          mailing of an FPAA suspends the running of the 3-year limitations           
          period until 1 year after the Court’s decision relating to a                
          partnership-level proceeding becomes final); Aufleger v.                    








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

Last modified: May 25, 2011