- 38 -
1982, Pub. L. 97-248, sec. 402(a), 96 Stat. 648. The statute
makes a distinction between partnership items and nonpartnership
items, or “affected items”. The tax treatment of partnership
items may be determined only in a partnership-level proceeding,
while the tax treatment of affected items may only be determined
in a partner-level proceeding. See sec. 6221; Affiliated Equip.
Leasing II v. Commissioner, 97 T.C. 575, 576 (1991); Sparks v.
Commissioner, 87 T.C. 1279, 1284 (1986); Maxwell v. Commissioner,
87 T.C. 783, 789 (1986). This Court has previously held that
section 6621(c) interest is an affected item which may require
findings of fact peculiar to a particular partner and as such
cannot be determined in a partnership-level proceeding.15 See,
e.g., Affiliated Equip. Leasing II v. Commissioner, supra at 578-
579; N.C.F. Energy Partners v. Commissioner, 89 T.C. 741, 745-746
(1987).
In River City Ranches #1 Ltd. v. Commissioner, T.C. Memo.
2003-150, a partnership-level proceeding involving Hoyt sheep
breeding partnerships, the taxpayers argued that the Tax Court
has jurisdiction over section 6621(c) interest at the partnership
15 The Taxpayer Relief Act of 1997 (TRA 1997), Pub. L. 105-
34, sec. 1238(b)(1), 111 Stat. 1026, amended sec. 6226(f) and
expanded this Court’s jurisdiction in partnership-level
proceedings to include the applicability of “any penalty,
addition to tax, or additional amount” related to the adjustment
of a partnership item. This amendment to sec. 6226(f) is
effective only for partnership taxable years ending after Aug. 5,
1997, and does not apply to the years at issue in the instant
case. TRA 1997 sec. 1238(c), 111 Stat. 1027.
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