Partnership Item

ID:
Office:
UILC:
CCA_2009082012461537
---
6231.03-00
Number: 200944031
Release Date: 10/30/2009
From: ---
Sent: Thursday, August 20, 2009 12:46:16 PM
To: ---
Cc: ---
Subject: RE: TEFRA
At page 860 of Roberts the court held that the partner will be bound by the partnership items reported on the partnership return if we do not conduct a TEFRA proceeding for the partnership return. So if you issue an FPAA to ---(the partner), the partner proceeding for --- will be bound by the contribution amount reflected on the partnership return of ---. This is a partnership items of --- binding on its partners. Treas. Reg. 301.6231(a)(3)-1(c)(2). Since we are bound by this contribution amount reflected on --- return in the --- proceeding, this amount (as reported on ---s return) cannot be changed to a different number in ---s own separate proceeding. See University Heights v.
Commissioner, 97 T.C. 278 (1991). So if your --- proceeding is dependant on our changing the amount of this item reported on the --- return, you would have to issue an FPAA to --- in order to change the reported contribution amount. See also Nussdorf v. Commissioner (full T.C. opinion issued last year on this point) Section 704(d) applies to ---, but section 465 does not apply to partnerships such as ---.
Hambrose v. Commissioner, 99 T.C. 298, 310 (1992)(465 applies only to individuals and C corps).
Section 465 would be asserted against the individual partners of --- through affected item notices of deficiency issued to them within one year of the completion of the partnership proceeding.
Call me --- if you would like to discuss any of these points.