Michael V. Domulewicz and Mary Ann Domulewicz - Page 11




                                       - 11 -                                         
                                     Discussion                                       
               Petitioners argue that the long-term capital gain and                  
          accuracy-related penalty determinations in the affected items               
          notice of deficiency are computational adjustments which section            
          6230(a) places outside the Court’s jurisdiction at the partner              
          level.9  Respondent argues that the Court has jurisdiction to               
          decide the issue concerning the long-term capital gain but not              
          the issue concerning the accuracy-related penalties.  We agree              
          with respondent.                                                            
               This Court is a court of limited jurisdiction, and we may              
          exercise our jurisdiction only to the extent provided by                    


               9 In relevant part, sec. 6230(a) provides:                             
                    SEC. 6230(a).  Coordination with Deficiency                       
               Proceedings.--                                                         
                         (1) In general.--Except as provided in                       
                    paragraph (2) or (3), subchapter B of this                        
                    chapter shall not apply to the assessment or                      
                    collection of any computational adjustment.                       
                         (2) Deficiency proceedings to apply in                       
                    certain cases.--                                                  
                              (A) Subchapter B shall apply                            
                         to any deficiency attributable to--                          
                                   (i) affected items                                 
                              which require partner                                   
                              level determinations                                    
                              (other than penalties,                                  
                              additions to tax, and                                   
                              additional amounts that                                 
                              relate to adjustments to                                
                              partnership items) * * *                                





Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next 

Last modified: November 10, 2007