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item to the extent it is not a partnership item. A partner
generally may not compute his affected items before a related
partnership-level proceeding is completed. Dial USA, Inc. v.
Commissioner, 95 T.C. 1 (1990). We lack jurisdiction over
affected items in a notice of deficiency that was issued before
the completion of the related TEFRA partnership proceedings. GAF
v. Commissioner, supra at 525. Since respondent issued the
notice of deficiency before the decision in the related TEFRA
proceeding was entered, respondent concludes that we do not have
jurisdiction.
We do not have sufficient information to determine whether
we have jurisdiction over the above-described items. The record
does not give us enough information to determine whether TEFRA
applies. The Schedules K-1 show that petitioner and Clarion
Forex were listed as partners of Alameda. However, since there
are fewer than five partners of Alameda, the small-partnership
exception to TEFRA under section 6231(a)(1)(B) may apply.
Section 6231(a)(1)(B) excepts certain small partnerships
from TEFRA procedures. If TEFRA procedures do not apply, they do
not restrict the Commissioner from determining deficiencies in
the income tax of partners. Section 6231(a)(1)(B) provides:
(B) Exception for small partnerships.--
(i) In general.--The term “partnership” shall not
include any partnership having 10 or fewer partners
each of whom is an individual (other than a nonresident
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Last modified: November 10, 2007