David Soward - Page 10

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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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