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Responsibility Act of 1982 (TEFRA), Pub. L. 97-248, sec. 402(a),
96 Stat. 648.
Under the TEFRA partnership procedures, the tax treatment of
items of income, loss, deductions, and credits is generally
determined in partnership-level proceedings rather than in
separate proceedings involving each partner. Sec. 6221; H. Conf.
Rept. 97-760, at 600 (1982), 1982-2 C.B. 600, 662.
Mr. Wadsworth’s distributive share of Gold Coast’s aggregate
income, gain, loss, deduction, or credit is a partnership item.
Sec. 6231(a)(3); sec. 301.6231(a)(3)-1(a)(1)(i), Proced. & Admin.
Regs. If TEFRA requires that a partnership item be determined at
the partnership-level, then the issuance of an FPAA is a
condition precedent to the exercise of this Court’s jurisdiction
over a partnership item, and we have no jurisdiction to
redetermine any portion of a deficiency attributable to a
“partnership item” in an individual proceeding. Sec. 6225(a);
Maxwell v. Commissioner, 87 T.C. 783, 789 (1986). However, if
Gold Coast is excluded from TEFRA as a small partnership under
section 6231(a)(1)(B), as respondent contends, what might
otherwise be “partnership items” in a TEFRA proceeding may be
litigated in this individual deficiency proceeding.
As it applied in the years at issue, section 6231(a)(1)
provided, in pertinent part, as follows:
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Last modified: May 25, 2011