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because of the uncertainty of whether TEFRA procedures in
sections 6221-6234 apply to those items.1 See Tax Equity and
Fiscal Responsibility Act of 1982 (TEFRA), Pub. L. 97-248, secs.
402-407(a), 96 Stat. 648. However, we have jurisdiction over one
of the items adjusted regardless of whether TEFRA applies.
Therefore, respondent’s motion will be denied.
Background
Petitioners are husband and wife. Their residence at the
time of filing the petition was in Hermosa Beach, California.
Respondent issued a notice of deficiency for the taxable year
2001 to petitioners on January 27, 2005. The deficiency notice
contained adjustments arising from petitioner’s interest in a
partnership called Alameda Investments, L.L.C. (Alameda). On its
Form 1065, U.S. Return of Partnership Income, for 2001 Alameda
listed an ordinary loss of $12,279 from trade or business
activities. On petitioner’s Schedule K-1, Partner’s Share of
Income, Credits, Deductions, etc., petitioner was identified as
the 99-percent owner of Alameda. A separate Schedule K-1
identified Clarion Forex Advisors XV, LLC (Clarion Forex) as the
1-percent partner. The Schedule K-1 for petitioner allocated to
her, as her distributive share, 100 percent of the partnership’s
1Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended.
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Last modified: November 10, 2007