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105-34, sec. 1238(a), 111 Stat. 1026 (1997 TRA), Congress amended
section 6221 to provide that the applicability of any penalty
(including an accuracy-related penalty) which relates to an
adjustment of a partnership item shall be determined at the
partnership level.2 See sec. 6221.3 The 1997 TRA further
provides that a partner may assert a partner-level defense to a
penalty in a refund forum. See H. Conf. Rept. 105-220, at 685
(1997), 1997-4 C.B. (Vol. 2) 1457, 2155; sec. 301.6221-1T,
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6781 (Mar. 5,
1987), amended by T.D. 8808, 1991-1 C.B. 682, Jan. 25, 1999.
The notice of deficiency includes penalties that were
determined at the partnership level relating to Gateway’s taxable
year ending December 21, 2000. Accordingly, the Court lacks
jurisdiction to redetermine the applicability of the penalties.
Sec. 6221.
Contentions we have not addressed are irrelevant, moot, or
meritless.
2 The 1997 TRA applies to partnership taxable years ending
after Aug. 5, 1997. 1997 TRA sec. 1238(c), 111 Stat. 1027.
3 Prior to the 1997 TRA, penalties could only be
redetermined in a partner-level proceeding. N.C.F. Energy
Partners v. Commissioner, 89 T.C. 741 (1987); See H. Conf. Rept.
105-220, at 685 (1997), 1997-4 C.B. (Vol. 2) 1457, 2155.
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Last modified: November 10, 2007