Larry J. and Sherilyn Wadsworth - Page 15

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          rational basis.  See Hamilton v. Commissioner, 68 T.C. 603, 608             
               One rational basis for the distinction between TEFRA                   
          partnerships and small partnerships is the complexity of the                
          TEFRA procedures themselves.  The TEFRA procedures, suited to               
          complex examinations and litigation of partnership items in the             
          case of large partnerships, may be unnecessarily burdensome--to             
          both the Commissioner and taxpayers--for the examination and                
          litigation of simple partnerships.  We therefore reject                     
          petitioners’ constitutional arguments.                                      
               Nor will we heed petitioners’ call to treat the listing of             
          Mr. Wadsworth as a tax matters partner on Gold Coast’s 2001 and             
          2002 partnership returns as a “deemed election” to be subject to            
          the unified partnership procedures of TEFRA.  A taxpayer must               
          clearly notify the Commissioner of the taxpayer’s intent to make            
          an election.  Kosonen v. Commissioner, T.C. Memo. 2000-107                  
          (citing Knight-Ridder Newspapers, Inc. v. United States, 743 F.2d           
          781, 795 (11th Cir. 1984)).  To make an election, “the taxpayer             
          must exhibit in some manner * * * his unequivocal agreement to              
          accept both the benefits and burdens of the tax treatment                   
          afforded” by the governing statute.  Id. (quoting Young v.                  
          Commissioner, 83 T.C. 831, 839 (1984), affd. 783 F.2d 1201 (5th             
          Cir. 1986)).  “A taxpayer has not made an election if it is not             
          clear from the return that an election has been made.”  Id.                 

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