-19-
Dial USA, Inc. v. Commissioner, 95 T.C. at 5 n.5. [Id.
at 312; fn. ref. omitted.]
We have also considered a similar issue with respect to
contributions of property to a passthrough entity and the effect
of the contributions on the basis of individual members. In Dial
USA, Inc. v. Commissioner, 95 T.C. 1 (1990), we considered
whether a member’s basis in an S corporation is a “subchapter S
item” within the meaning of former section 6245.12 We
acknowledged that the partnership audit and litigation provisions
contained in sections 6221-6231 “were, in effect, grafted onto
the subchapter S audit and litigation provisions” by former
section 6244, id. at 3, and we held that a member’s basis in the
passthrough entity was not an item “required” to be taken into
account by the entity for the entity’s taxable year, id. at 5-6.
We conclude that it is not necessary or appropriate to
decide the basis and at-risk issues.
To reflect the foregoing,
An appropriate decision will
be entered.
12The subch. S audit and litigation provisions were repealed
by the Small Business Job Protection Act of 1996, Pub. L. 104-
188, sec. 1307(c)(1), 110 Stat. 1781, applicable to tax years
beginning after Dec. 31, 1996.
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