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that those instructions neither require nor permit the
consideration of any information concerning indirect partners,
respondent asserts, the Court may not in this proceeding look
through the two tiers of passthrough entities connected to LTD
and identify LTD’s indirect partners.
We begin our analysis with section 6231(a)(3). That section
provides that a partnership item is “any item required to be
taken into account for the partnership’s taxable year under any
provision of subtitle A to the extent regulations prescribed by
the Secretary provide that, for purposes of this subtitle, such
item is more appropriately determined at the partnership level
than at the partner level.” Thus, in accordance with this
section, the Court will have jurisdiction over the disputed issue
(in that it will be a partnership item) if we find that a
reporting of LTD’s ordinary income as NESE is (1) an item
required to be taken into account for LTD’s 1999 taxable year
under a provision of subtitle A and (2) an item that the
regulations provide is more appropriately determined at the
partnership level than at the partner level. We do not make
either finding.
Subtitle A did not require that LTD determine dispositively
the amount of its ordinary income that was NESE. Subtitle A
requires that a partnership separately state the amount of income
that may affect partners differently, or as applicable here, the
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