Michael V. Domulewicz and Mary Ann Domulewicz - Page 12




                                       - 12 -                                         
          Congress.  See sec. 7442; see also GAF Corp. & Subs. v.                     
          Commissioner, 114 T.C. 519, 521 (2000).  We have jurisdiction to            
          redetermine a deficiency if a valid notice of deficiency is                 
          issued by the Commissioner and if a timely petition is filed by             
          the taxpayer.  See GAF Corp. & Subs. v. Commissioner, supra at              
          521.  We may decide issues only to the extent of our                        
          jurisdiction, and the fact that the parties agree that we lack              
          jurisdiction to decide the issue concerning the accuracy-related            
          penalties does not necessarily mean that we indeed lack                     
          jurisdiction to decide that issue.  See Charlotte’s Office                  
          Boutique, Inc. v. Commissioner, 121 T.C. 89, 102-104 (2003),                
          affd. 425 F.3d 1203 (9th Cir. 2005).                                        
               Partnerships are not subject to Federal income tax.  See               
          sec. 701.  They are required, however, to file annual information           
          returns reporting their partners’ distributive shares of income,            
          gain, loss, deductions, or credits.  See sec. 6031; see also                
          Randell v. United States, 64 F.3d 101, 103 (2d Cir. 1995).  The             
          partners are required to report their distributive shares of                
          those items on their personal Federal income tax returns.  See              
          secs. 701, 702, 703, and 704.                                               
               Before 1982, the Commissioner and the courts were required             
          to adjust partnership items at the partner level.  See Randell v.           
          United States, supra at 103.  Because this requirement resulted             
          in a duplication of administrative and judicial resources and               







Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next 

Last modified: November 10, 2007