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election was to be effective. Sec. 301.6231(a)(1)-1T(b)(2),
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6790 (Mar. 5,
1987). The statement was required to be identified as an
election under section 6231(a)(1)(B)(ii), to be signed by each
person who was a partner at any time during the taxable year to
which the return relates, and to be filed at the time and place
prescribed for filing the partnership return. Id.
With the assistance of a return preparer, Mr. Wadsworth
filed Forms 1065 for Gold Coast’s tax years 2001 and 2002. For
both years, question 4 of Schedule B, Other Information, read as
follows: “Is this partnership subject to the consolidated audit
procedures of sections 6221 through 6233? If ‘Yes,’ see
Designation of Tax Matters Partner below”. On both the 2001 and
2002 returns, “No” is marked in the “Yes/No” columns adjacent to
question 4 of Schedule B. Below question 4, in the section
entitled “Designation of Tax Matters Partner”, both the 2001 and
2002 forms list Mr. Wadsworth as the tax matters partner for the
tax years of the returns. No section 6231(a)(1)(B)(ii) election
statement was filed with either the 2001 or the 2002 partnership
return.
Petitioners implicitly concede that Gold Coast did not
elect, in conformity with the terms of the temporary regulations,
to be subject to the unified partnership procedures of TEFRA.
Instead, they argue, inter alia, that the small partnership
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