- 8 -
1351 (Fed. Cir. 2007); Ginsburg v. Commissioner, 127 T.C. 75, 84-
85 (2006); Rhone-Poulenc Surfactants & Specialties, L.P. v.
Commissioner, supra at 534; Andantech L.L.C. v. Commissioner,
T.C. Memo. 2002-97, affd. in relevant part and remanded in part
331 F.3d 972 (D.C. Cir. 2003); CC&F W. Operations Ltd. Pship. v.
Commissioner, T.C. Memo. 2000-286, affd. 273 F.3d 402 (1st Cir.
2001).
The issuance of an FPAA suspends the running of any
applicable period of limitations under sections 6229 and 6501
until the FPAA adjustments become final or conclusively
established,10 after which the Commissioner has 1 year to assess
partners with the tax which properly accounts for their
distributive shares of the adjusted partnership items. Sec.
6229(d). The adjustment is a computational adjustment,11 without
notice, provided no partner-level determination is necessary. A
statutory notice of deficiency is not required for a
computational adjustment because, under TEFRA, the partnership
item has been resolved at the partnership level and cannot be
10 Adjustments may become final or conclusively established
as a result of an unchallenged FPAA, a judicial determination
pursuant to a sec. 6226 proceeding, a settlement agreement
pursuant to sec. 6224(c), or a request for administrative
adjustment pursuant to sec. 6227.
11 A computational adjustment is any change in a partner’s
tax liability to reflect the proper treatment of a partnership
item. Sec. 6231(a)(6).
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Last modified: November 10, 2007