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level. Citing Affiliated Equip. Leasing II and N.C.F. Energy
Partners, the Tax Court concluded that it lacked jurisdiction to
decide the applicability of section 6621(c) interest in a
partnership-level proceeding.16
On appeal, the Court of Appeals for the Ninth Circuit
reversed the Tax Court on the section 6621(c) interest issue.
River City Ranches #1 Ltd. v. Commissioner, 401 F.3d at 1143-
1144. The Court of Appeals stated:
A partnership’s tax items, which determine the
partners’ taxes, are litigated in partnership
proceedings--not in the individual partners’ cases. 26
U.S.C. � 6221 * * *.
The nature of the partnerships’ transactions
[i.e., whether or not the transactions were tax
motivated transactions] is a “partnership item” * * *.
As a “partnership item,” the character of the
partnerships’ transactions is within the Tax Court’s
scope of review.
The Tax Court erred in holding that it had no
jurisdiction to make findings concerning the character
of the partnerships’ transactions, for purposes of the
26 U.S.C. � 6621 penalty-interest provisions.
Accordingly, we remand for the court to make such
findings. [Emphasis added.]
Petitioner resided in Lodi, California, when he filed his
petition, and, absent stipulation to the contrary, appeal of this
case would be to the Court of Appeals for the Ninth Circuit.
16 Like the instant case, River City Ranches #1 Ltd. v.
Commissioner, T.C. Memo. 2003-150, affd. in part and revd. in
part 401 F.3d 1136 (9th Cir. 2005), involved tax years ending on
or before Aug. 5, 1997. Thus, the expanded jurisdiction under
TRA 1997 did not apply. See supra note 15; see also TRA 1997
sec. 1238(c).
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