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has not substantiated the large deductions that he claimed
against his other income in 1982, 1983, and 1984.
Petitioner additionally argues that the criminal
investigation of petitioner caused the partnership items of
petitioner in 1982, 1983, and 1984, to become nonpartnership
items. Therefore, he contends that he should not be bound by the
decision in Lumenetics v. Commissioner, supra, because he should
not have been affected by the TEFRA procedure. The Appeals
officer did not address this argument in the notice of
determination, but instead grouped it with petitioner’s other
claims and stated that petitioner was barred from raising these
issues under section 6330(c)(2)(B) because he had a previous
opportunity to do so.
Partnership items of a partner for a partnership taxable
year become nonpartnership items as of the date the IRS mails to
such partner a notice that such items shall be treated as
nonpartnership items. Sec. 6231(b)(1)(A). One circumstance
under which this could happen is when the taxpayer is under
criminal investigation. Sec. 6231(c)(1)(B). Section
301.6231(c)-5T, Temporary Proced. & Admin. Regs., 52 Fed. Reg.
6793 (Mar. 5, 1987), states:
The treatment of items as partnership items with
respect to a partner under criminal investigation for
violation of the internal revenue laws relating to
income tax will interfere with the effective and
efficient enforcement of the internal revenue laws.
Accordingly, partnership items of such a partner
arising in any partnership taxable year ending on or
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