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(1) the close of the 150th day after the day
on which a notice of a final partnership
administrative adjustment was mailed to the tax
matters partner, and
(2) if a proceeding is begun in the Tax Court
under section 6226 during such 150-day period, the
decision of the court in such proceeding has
become final.
Additionally, the Commissioner generally must follow the
deficiency procedures before assessing a liability related to a
nonpartnership item such as an affected item that requires a
partner-level determination. See sec. 6230(a)(2). Under section
6231(a)(3), (4), and (5), “partnership item”, “nonpartnership
item”, and “affected item” are defined as follows:
(3) * * * The term “partnership item” means, with
respect to a partnership, any item required to be taken
into account for the partnership’s taxable year under
any provision of subtitle A 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.
(4) * * * The term “nonpartnership item” means an
item which is (or is treated as) not a partnership
item.
(5) * * * The term “affected item” means any item
to the extent such item is affected by a partnership
item.
Because the tax treatment of affected items depends on
partnership-level determinations, affected items cannot be tried
as part of a partner’s personal tax case until the resolution of
the partnership proceeding. GAF Corp. & Subs. v. Commissioner,
supra at 526 (citing Dubin v. Commissioner, 99 T.C. 325, 328
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Last modified: May 25, 2011