Colin P. Murphy - Page 10




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         Ovation.  Under the circumstances, respondent was permitted by               
         the statute and regulations to mail the FPAA to petitioner, an               
         indirect partner of Ovation, rather than to CM Trust, the direct             
         partner through which petitioner held his interest in Ovation.               
         See Crowell v. Commissioner, 102 T.C. 683, 692-693 (1994).  We               
         conclude that the FPAA respondent mailed to petitioner at his                
         reported address met the notice requirement of section 6223(a) by            
         virtue of section 6223(c)(3).                                                
              Petitioner seeks a contrary conclusion, arguing that CM                 
         Trust is a complex trust rather than a grantor trust and that a              
         complex trust is not a “pass-thru partner” within the meaning of             
         section 6223(c)(3).  We consider this argument unavailing.  For              
         purposes of section 6223(c)(3), section 6231(a)(9) plainly                   
         defines the term “pass-thru partner” to include a “trust” that               
         holds an interest in a partnership.  We read nothing in the                  
         relevant provisions that expresses a legislative intent to limit             
         that definition to any particular type of trust.  Moreover, under            
         the facts at hand, petitioner stated affirmatively on his                    
         personal income tax return that CM Trust was his grantor trust,              
         and those statements were corroborated by the like position taken            
         by CM Trust on its trust tax return.  Thus, even if a distinction            
         between a grantor trust and a complex trust was important in the             
         application of section 6223(c)(3), a conclusion that we do not               
         reach but which we discuss for purposes of completeness, we would            







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Last modified: November 10, 2007