- 14 - 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 orPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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