- 7 - the Secretary provide that, for purposes of this subtitle, such item is more appropriately determined at the partnership level than at the partner level. If the tax treatment of a partnership item is at issue, the statute generally requires the matter to be resolved at the partnership level. Sec. 6221; Maxwell v. Commissioner, supra at 787-788. Further, deficiencies attributable to “affected items” may not be assessed until the related partnership proceeding is completed. See sec. 6225(a); GAF Corp. & Subs. v. Commissioner, 114 T.C. 519, 525 (2000). An affected item is “any item to the extent such item is affected by a partnership item.” Sec. 6231(a)(5). An affected item is peculiar to a partner’s own tax posture. Maxwell v. Commissioner, supra at 790. Respondent asserts that all the adjustments in the notice of deficiency consist of affected items that depend on partnership- level determinations. Respondent asserts that the adjustments in the notice of deficiency relating to petitioners’ share of the partnership loss is a partnership item under section 301.6231(a)(3)-1(a)(1)(i), Proced. & Admin. Regs. Respondent further argues that adjustment for the amount of loss petitioners sustained for their sale of securities depends on a determination of petitioners’ basis in Alameda, which petitioners used to compute their basis in the securities under section 732(b). Under section 301.6231(a)(5)-1(b), Proced. & Admin. Regs., the basis of a partner’s interest in a partnership is an affectedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 NextLast modified: November 10, 2007