- 2 - DII. P claimed that the loss offset a $5,831,772 capital gain that P realized during the year. In an FPAA pertaining to DIP, R determined that the basis of the stock distributed by DIP was zero and that accuracy-related penalties under sec. 6662, I.R.C., applied. When no petition was filed as to the FPAA, R did not assess any tax or accuracy-related penalty as to DII’s sale of the stock. Instead, R issued an affected items notice of deficiency to Ps as a predicate to assessing those amounts. Ps now move the Court to dismiss this case for lack of jurisdiction, asserting that the deficiency procedures of subch. B of ch. 63, I.R.C. (deficiency procedures), do not apply to R’s disallowance of the passthrough loss or to R’s determination of the accuracy-related penalties. Held: Sec. 6230(a)(2)(A)(i), I.R.C., makes the deficiency procedures applicable to R’s disallowance of the passthrough loss from DII. Held, further, R’s determination of the accuracy-related penalties is not subject to the deficiency procedures by virtue of the parenthetical text added to sec. 6230(a)(2)(A)(i), I.R.C., by the Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 1238(b)(2), 111 Stat. 1026. David D. Aughtry, Eric M. Nemeth, and Paul L.B. McKenney, for petitioners. Meso T. Hammoud, for respondent. OPINION LARO, Judge: This is a Son-of-BOSS case that is currently before the Court on petitioners’ motion to dismiss for lack of jurisdiction. See generally Kligfeld Holdings v. Commissioner, 128 T.C. 192 (2007), and Notice 2000-44, 2000-2 C.B. 255, for a general description of Son-of-BOSS cases. Petitioners petitionedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007