Larry J. and Sherilyn Wadsworth - Page 10

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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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