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taxable year involved” designated as default
TMP;
• Section 6231(d)(1)(B)--partnership percentage
interests determined on the basis of profits
interests “as of the close of the partnership
taxable year;” and
• Section 6226(c)(1)--right to file a petition
challenging the FPAA limited to partners “in
such partnership at any time during such
year * * *.”
Kligfeld correctly points out that these provisions don’t
seem to contemplate the possibility that this case raises--a
situation where the Commissioner issues an FPAA for one taxable
year aimed at the treatment of an affected item on a partner’s
return for a later year. Imagine a partnership that in 1990 has
50 partners, but due to a great deal of turnover in ownership
interests, has 50 completely different partners by 2000. Were
the Commissioner to issue an FPAA for the 1990 taxable year aimed
at an affected item on the 2000 tax returns of the current
individual partners, who could challenge it? Under section
6226(c), only the 1990 partners would be partners “in such
partnership at any time during such year,” but section 6226(d)(1)
might deprive them of standing because they would have no
interest in the outcome.21 And if there were no designated TMP,
then who would serve by default? Section 6231(a)(7) says that it
21 We assume for the purpose of discussing this hypothetical
that all the 1990 partners filed timely, nonfraudulent returns
more than three years before disposing of their partnership
interests.
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Last modified: November 10, 2007