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items” refers to subsection (d)(1)(A), which discusses “the
partnership items of such partner for the partnership taxable
year * * *.” (Emphasis added.) Kligfeld claims that this
language supports his reading of the Code’s treatment of partners
and partnerships--especially its echo of section 706(a)--as
requiring that any paired FPAA and notice of deficiency must be
for the same or overlapping taxable year.
But Kligfeld focuses on the wrong language within this
section of the Code. We agree with the Commissioner that the key
language in section 6226(d)(1)(B) is that a partner may be a
party to the TEFRA procedure for the period within which “any tax
attributable to such partnership items” (emphasis added) can be
assessed. A tax that is attributable to a particular partnership
item need not be reportable by both the partner and the
partnership in the same taxable year. For instance, Holdings 2
made the basis adjustments to its Inktomi stock--which was a
partnership, or at least affected, item--on its 1999 return, but
Corporation reported a taxable capital gain on the later sale of
the distributed portion of that same stock on its 2000 return.
The potential resulting tax was attributable--in the sense of
being at least partially dependent on--that basis computation.
In addition to focusing on the wrong language, Kligfeld also
appears to confuse the assessment of tax with the adjustment of
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