- 10 - (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, 328Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011