Statute of limitations is affirmative defense in partnership proceeding

Article Abstract:

The IRS sent a notice of final partnership administrative adjustment (FPAA) to Marlin, a tax matters partner in a limited partnership. However, the partnership did not receive a copy of the FPAA. The IRS also failed to select a partner to succeed Marlin, which was going bankrupt. When a copy of the FPAA was finally sent, the partnership sought a readjustment of terms. However, the tax court did not allow said adjustment. The court considered the FPAA sent to Marlin as substantial enough to warrant consideration of the partners' position on suspending the statute of limitations.

Cases, Limited partnership, Limited partnerships, Tax courts

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FPAA did not preclude enforcement of IRS summonses

Article Abstract:

The appellate court argues that the regulation allowing the IRS to mail only one final partnership administrative adjustment (FPAA) per partner does not infringe on the IRS' power to issue summons. An FPAA which lists partnership items of income is still superceded by the power of a summons regardless of time constraints. The IRS performs its administrative or investigative functions despite the status of FPAAs.

Partnership, Partnerships, Powers and duties, Appellate courts

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