-14-
7. Current Status
Steele is a fugitive from justice, and his whereabouts are
unknown. Respondent filed an unopposed motion to remove Steele
as Leatherstocking’s TMP on April 28, 2003. Pursuant to an order
of the Court dated July 16, 2003, Steele was removed as
Leatherstocking’s TMP on the same day. On December 5, 2003, the
Court granted the motion of participating partner Philip Wallach
to be appointed substitute TMP for purposes of this litigation.
OPINION
As part of TEFRA, Congress enacted audit and litigation
procedures to provide for the unified treatment of partnership
income, loss, deductions, and credits among the partners. See
H. Conf. Rept. 97-760, at 600 (1982), 1982-2 C.B. 600, 662.
Under TEFRA, the tax treatment of any partnership item is
generally determined at the partnership level. See sec. 6221;
see also sec. 6231(a)(3) (partnership item means, with respect to
a partnership, an item that is more appropriately determined at
the partnership level than at the partner level, according to
applicable regulations). Any dispute regarding the tax treatment
of a partnership item is resolved at the partnership level in a
unified partnership proceeding held in an administrative or
judicial forum, see secs. 6226, 6227, and 6228, and the TMP is
required to keep the other partners informed of the happenings in
those proceedings, see sec. 6223(g). The TMP is usually the
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