Roger D. and Mary M. Catlow - Page 17

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          Memo. 1997-535; Columbia Bldg., Ltd. v. Commissioner, 98 T.C.               
          607, 611 (1992); Robinson v. Commissioner, 57 T.C. 735, 737                 
          (1972).  Where, as here, the claim of a time bar relates to items           
          of a partnership, the claim must be made in the partnership                 
          proceeding and may not be considered at a proceeding involving              
          the personal income tax liability of one or more of the partners            
          of the partnership.  See Davenport Recycling Associates v.                  
          Commissioner, supra at 1259-1260; Chimblo v. Commissioner, supra            
          at 125; Kaplan v. United States, 133 F.3d 469, 473 (7th Cir.                
          1998).                                                                      
               Second, petitioners argue that Cochran’s rejection of their            
          offer-in-compromise conflicts with the congressional committee              
          reports underlying the enactment of section 7122.  According to             
          petitioners, their case is a “longstanding” case, and those                 
          reports require that respondent resolve such cases by forgiving             
          interest and penalties that otherwise apply.  We disagree with              
          petitioners’ reading and application of the legislative history             
          underlying section 7122.  Petitioners’ argument on this point is            
          essentially the same argument that was considered and rejected by           
          the Court of Appeals for the Ninth Circuit in Fargo v.                      
          Commissioner, 447 F.3d at 711-712.  We do likewise here for the             
          same reasons stated in that opinion.  We add that petitioners’              
          counsel participated in the appeal in Fargo v. Commissioner,                
          supra, as counsel for the amici.  While petitioners in their                






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