Alan H. Ginsburg and Estate of Harriet F. Ginsburg, Deceased, Alan H. Ginsburg, Personal Representative - Page 7

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          I.   Petitioners’ Motion To Dismiss for Lack of Jurisdiction                
               Petitioners’ motion to dismiss for lack of jurisdiction                
          focuses on whether the disallowed losses are partnership items              
          that must be adjusted at the partnership level.  If we find that            
          those losses are partnership items, then we do not have                     
          jurisdiction over respondent’s adjustments in the notice of                 
          deficiency because such items may not be adjusted in an                     
          individual deficiency proceeding.  See sec. 6230(a)(1).                     
               TEFRA provisions divide disputes arising from “partnership             
          items” from those arising from “nonpartnership items”.  Maxwell             
          v. Commissioner, 87 T.C. 783, 787 (1986) (citing section                    
          6231(a)(3) and (4)).  If the tax treatment of a partnership item            
          is at issue, the statute requires the matter to be resolved at              
          the partnership level.  Sec. 6221; Maxwell v. Commissioner, supra           
          at 787-788.  Section 6231(a)(3) defines a partnership item as               
          “any item required to be taken into account for the partnership’s           
          taxable year * * * 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.”  Partnership items under section 6231(a)(3)             
          and the applicable regulations include items of loss reflected on           

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