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disabling conflict of interest. However, the current situation
is distinguishable from River City Ranches #1 Ltd., primarily
because petitioner was not purporting to act as TMP and thus owed
no comparable fiduciary duty to other partners.
Petitioner was investigated for violation of internal
revenue laws occurring during 1983, 1984, and later. The
partnership items at issue arose during partnership years ended
on or before the last day of the latest year for which he was
being criminally investigated. However, there is nothing in the
record to show that written notification was ever mailed to
petitioner stating that his partnership items would be treated as
nonpartnership items. Additionally, there is nothing to suggest
that the criminal investigation of petitioner would have
interfered with effective and efficient enforcement of internal
revenue laws or would have created a disabling conflict of
interest.
Accordingly, the assessments made by the IRS, based on the
partnership adjustments, were proper, and the failure of the
Appeals officer specifically to address on the merits
petitioner’s argument as to the conversion of partnership items
does not warrant a remand of this case for another hearing. See
Lunsford v. Commissioner, 117 T.C. 183, 189 (2001).
Finally, petitioner contends that, during his criminal
investigation, several boxes of his files were seized by the
investigators. He further contends that he and/or his counsel
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