- 7 - Discussion 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 onPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011