- 9 -
A. Partnership Level
Respondent concedes that UK Lotto is a partnership within
the meaning of section 6231(a)(1). Respondent did not issue
notices of final partnership administrative adjustment (FPAAs)
with respect to UK Lotto for 1995. The loss attributable to
Pascal & Co. is a partnership item at the TEFRA-entity level.
See sec. 6231(a)(3); sec. 301.6231(a)(3)-1(a)(1)(i), Proced. &
Admin. Regs. The limitations period for issuing FPAAs pertaining
to UK Lotto’s 1995 return expired on December 31, 2003, pursuant
to the last Form 872-P executed on behalf of UK Lotto and
respondent for the taxable year 1995. See sec. 6229(a) and
(b)(1). Consequently, the tax treatment of all partnership items
with respect to UK Lotto is final. See Roberts v. Commissioner,
94 T.C. 853, 857 (1990). There can be no partnership proceedings
to adjust or modify the partnership items as reported on the UK
Lotto return. In addition, respondent through his letter in
April 2003 conceded administratively that the loss attributable
to Pascal & Co. is allowable at the UK Lotto partnership level.
B. S Corporation Level
NASM and FAP are not TEFRA entities. They each reported 50
percent of the loss from UK Lotto. NASM and FAP are “pass-thru”
partners under section 6231(a)(9). Section 6231(a)(9) provides
that a “‘pass-thru partner’ means a partnership, estate, trust, S
corporation, nominee, or other similar person through whom other
Page: 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