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can be made attributable to partnership items or affected items7.
See secs. 6223, 6225, 6226.
The Commissioner must give notice of both the beginning and
the ending of administrative proceedings. Sec. 6223(a). The
ending notice is the issuance of the FPAA, which must be mailed
no earlier than the 120th day after the notice of the beginning
of the administrative proceedings was mailed. Sec. 6223(d)(1).
TEFRA partnership provisions do not contain a period of
limitations within which an FPAA must be issued, unlike the
period of limitations applicable to the issuance of an FPAA to a
large partnership.8 Rhone-Poulenc Surfactants & Specialties, L.P.
v. Commissioner, 114 T.C. 533, 534 (2000).
7 An “affected item” is any item whose existence or amount
depends on any partnership item. Sec. 6231(a)(5). Examples of
affected items include: Capital loss carryforwards, net
operating loss carrybacks, investment tax credit carrybacks, a
partner’s basis in his partnership interest, passive losses, and
sec. 465 at-risk limitations. Harris v. Commissioner, 99 T.C.
121, 125 (1992); Dial USA, Inc. v. Commissioner, 95 T.C. 1, 5-6
(1990); Maxwell v. Commissioner, 87 T.C. 783, 790-791 (1986);
sec. 301.6231(a)(5)-1T, Temporary Proced. & Admin. Regs., 52 Fed.
Reg. 6790 (Mar. 5, 1987).
8 SEC. 6248. PERIOD OF LIMITATIONS FOR MAKING ADJUSTMENTS.
(a) General Rule.-- * * * no adjustment under this
subpart to any partnership item for any partnership taxable
year may be made after the date which is 3 years after the
later of--
(1) the date on which the partnership return
for such taxable year was filed, or
(2) the last day for filing such return for such
year (determined without regard to extensions).
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