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have on taxable years that are not before us in this proceeding.
For this reason, we cannot agree that Congress contemplated our
exercising jurisdiction over this type of adjustment. Cf. sec.
301.6226(f)-1T(b), Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6788 (Mar. 5, 1987) (indicating that the reviewing court has
jurisdiction to determine an issue raised by a partner relating
to partnership’s treatment of certain costs).
We hold that we do not have jurisdiction to determine issues
related to SMP’s reporting of its basis in SMHC stock for its
1997 and 1998 taxable years.
XI. Accuracy-Related Penalties
Respondent determined that section 6662 accuracy-related
penalties apply with respect to the partnership adjustments for
SMP and Corona.187 In particular, with respect to SMP, respondent
determined that the section 6662(h) 40-percent penalty for gross
valuation misstatements applies to the underpayments that result
from adjustments to the tax bases that SMP reported on its 1997
187 In the Taxpayer Relief Act of 1997, Pub. L. 105-34, sec.
1238(a), 111 Stat. 1026, Congress amended sec. 6221 to include,
as an item to be determined at the partnership level, the
applicability of any penalty, addition to tax, or additional
amount which relates to an adjustment to a partnership item,
effective for partnership taxable years ending after Aug. 5,
1997. Consequently, we have jurisdiction in this partnership-
level proceeding to decide issues relating to the sec. 6662
penalties that respondent determined. Partner-level defenses,
however, must be asserted in a separate refund action following
assessment and payment. See sec. 6230(c)(1)(C), (4); cf. sec.
301.6221-1(d), Proced. & Admin. Regs. (effective for partnership
taxable years beginning on or after Oct. 4, 2001).
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