Tax News

CCH (cch.taxgroup.com) reports:

The Tax Court lacked jurisdiction over a partner's challenge to accuracy-related penalties that were determined at a partnership level. While deficiency proceedings generally apply to affected items that require partner-level determinations, they do not apply to penalties that relate to adjustments of partnership items. Instead, the applicability of any penalty (including an accuracy-related penalty) that relates to an adjustment of a partnership item must be determined at the partnership level. A partner can then assert a partner-level defense to the penalty in a refund forum.
G.R. Fears, 129 TC No. 2, Dec. 57,029
Other References:
Code Sec. 6221
CCH Reference - 2007FED ¶37,569.12
Tax Research Consultant
CCH Reference - TRC PART: 60,060