- 21 -
301.6221-1T(c), Temporary Proced. & Admin. Regs., 64 Fed. Reg.
3838 (Jan. 26, 1999) (partnership-level determinations include
all legal and factual determinations underlying the determination
of partnership-level penalties, including partnership-level
defenses but not partner-level defenses). Before the Taxpayer
Relief Act of 1997 (TRA), Pub. L. 105-34, 111 Stat. 788,
partnership-item penalties were determined at the partner level
through the deficiency procedures after the partnership
proceedings to which they related were over. TRA section
1238(b)(2), 111 Stat. 1026, changed that treatment by, inter
alia, inserting into section 6230(a)(2)(A)(i) the parenthetical
text “other than penalties, additions to tax, and additional
amounts that relate to adjustments to partnership items”. Under
a plain reading of this amendment, the effect of the amendment
was to remove partnership-item penalties from the deficiency
procedures effective for partnership taxable years ending after
August 5, 1997.
Although a plain reading of the statute is ordinarily
conclusive, a clear legislative intent that is contrary to the
text may sometimes lead to a different result. See, e.g.,
Consumer Prod. Safety Commn. v. GTE Sylvania, Inc., 447 U.S. 102,
108 (1980); United States v. Am. Trucking Associations, 310 U.S.
534, 543 (1940). No such clear contrary legislative intent is
present here; indeed, the legislative history of the statute
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: November 10, 2007