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contested at the individual partner level.12 Secs. 6225, 6230(a),
6229(d); sec. 301.6231(a)(6)-1T(a)(1), Temporary Proced. & Admin.
Regs., 64 Fed. Reg. 3840 (Jan. 26, 1999).
Once the partnership proceeding is completed, if an affected
item requires determinations to be made at the partner level, the
Commissioner may issue a notice of deficiency to a partner for
additional deficiencies attributable to an affected item
requiring partner-level determinations. Sec. 6230(a); White v.
Commissioner, 95 T.C. 209, 211-212 (1990); sec. 301.6231(a)(6)-
1T(a)(2), Temporary Proced. & Admin. Regs., 64 Fed. Reg. 3840
(Jan. 26, 1999).
Petitioners do not dispute that the FPAA was issued within 3
years of the time they filed their 2002-04 individual income tax
returns. Petitioners do dispute whether respondent may assess a
tax liability for the 2002-04 taxable years where the underlying
partnership item adjustments relate to transactions that were
completed and reported on G-5’s partnership return in 2000, a
year closed to assessment by section 6501.
In deficiency proceedings, section 6501 does not preclude an
examination into events occurring in prior years which are closed
to assessment for the purpose of correctly determining income tax
12 Challenges to readjustments of affected items requiring
partner-level determinations are not precluded by the finality of
a partnership proceeding, although relitigation of distributable
partnership income is barred. Woody v. Commissioner, 95 T.C.
193, 208 (1990).
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