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pursuant to the TEFRA provisions of sections 6221-6234.1
Specifically, the inquiry centers on whether these losses should
be classified as “partnership items” or as “affected items” under
the applicable statutes. We hold that the adjustments in the
notice of deficiency limiting petitioners’ claimed losses concern
affected items over which we have jurisdiction.
The issue raised by petitioners’ motion for summary judgment
is based on the assumption that we hold that the items respondent
seeks to adjust are affected items. Under that assumption,
petitioners question whether the period of limitations on
assessment of tax attributable to affected items as set forth in
sections 6501 and 6229 has expired. In particular, we must
decide whether section 6229(b)(3) causes the extension of the
period of limitations in this case to be ineffective regarding
the affected items at issue. We hold that it does, and that
therefore the period of limitations on assessment has run.
Background
The parties agree on the basic facts. At the time that the
petition was filed, petitioner Alan Ginsburg, who is a fiduciary
for the Estate of Harriet Ginsburg, had a mailing address in
Winter Park, Florida. In 1995, the taxable year at issue, Mr.
and Mrs. Ginsburg, who were married at the time, owned 100
1Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended, and all Rule references
are to the Tax Court Rules of Practice and Procedure.
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Last modified: May 25, 2011