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deficiency. Generally, the Commissioner may not assess a
deficiency attributable to any partnership item until the 150th
day after the day on which the FPAA was mailed to the tax matters
partner. Sec. 6225.
For purposes of sections 6221 through 6234, a partnership is
defined by section 6231(a)(1)(A) to mean in general “any
partnership required to file a return under section 6031(a).”
Section 6231(a)(1)(B)(i) provides an exception to the definition
of a “partnership” for small partnerships. The term
“partnership” for this purpose does not include “any partnership
having 10 or fewer partners each of whom is an individual (other
than a nonresident alien), a C corporation, or an estate of a
deceased partner.” Miroyal is a partnership with only two
partners: Petitioner and Gerald Ricke. Both partners are
individuals; thus, Miroyal falls within the section 6231(a)(1)(B)
“partnership” exception.
However, a small partnership can elect to have Subchapter C
of Chapter 63 apply. See sec. 6231(a)(1)(B)(ii).10 Miroyal did
not make this election in 1999 or 2000. Because Miroyal falls
10 A partnership may elect to have Subchapter C apply to the
tax treatment of partnership items by checking the proper box on
Form 1065, Schedule B and by “attaching a statement to the
partnership return for the first taxable year for which the
election is effective.” Sec. 301.6231(a)(1)-1(b)(2), Proced. &
Admin. Regs. Miroyal neither checked the box on line 4 of Form
1065, Schedule B on its 1999 or 2000 Form 1065, nor did it attach
a statement to the Form 1065 electing to have Subchapter C of
Chapter 63 apply.
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