§1238 — Repealed. Pub. L. 101–508, title XI, § 11801(a)(35), Nov. 5, 1990, 104 Stat. 1388–521]

105-34, § 1238(a), 111 Stat. 788, 1026. Hamel, T.C. Memo. 2024-62, at *7–8. In Hamel, T.C. Memo. 2024-62, at *7, we said: Under a plain reading of the newly enacted wording, the effect of the amendment was to remove partnership- 9 As the Supreme Court has said, in the cases that come before us “the question that matters [is]: Does the statute authorize the

105-34, § 1238(b)(2), 111 Stat. 788, 1026], the effect of th[at] amendment was to remove partnership-item penalties from the deficiency procedures . . . .”); see also Hamel v. Commissioner, T.C. Memo. 2025-19, at *9–10 (addressing a similar challenge regarding section 6230(a)(2)(A)(i) made in a motion for reconsideration and concluding that “[o]ur foregoin

105-34, § 1238(a), 111 Stat. 788, 1026. Before the 1997 amendment section 6221 provided in part: Except as otherwise provided in this subchapter, the tax treatment of any partnership item shall be determined at the partnership level. After the 1997 amendment section 6221 provided in part: Except as otherwise provided in this subchapter, the tax treatment o

and their partners were enacted by Congress in the Tax Equity and Fiscal ResponsibilityAct of 1982 (TEFRA), Pub. L. No. 97-248, sec. 402(a), 96 Stat. at 648, and amended by Congress in the Taxpayer ReliefAct of 1997 (TRA 1997), Pub. L. No. 105-34, sec. 1238, 111 Stat. at 1026. The determinations of partnership items in partnership-level proceedings are binding on the partners and may not be challenged in subsequent partner-level proceedings. See secs. 6230(c)(4), 7422(h). Section 6226 provides f

1238, 111 Stat. at 1026. 4Sec. 301.6231(a)(6)-lT(a), Temporary Proced. & Admin. Regs., 64 Fed. Reg. 3840 (Jan. 26, 1999); see also sec. 301.6231(a)(6)-1(a)(1), Proced. & Admin. Regs. 5In most Son ofBOSS cases--as in the case at hand and in Petaluma FX Partners, LLC v. Commissioner, 135 T.C. 581 (2010) (Petaluma III), on remand from Petaluma FX

1238, 111 Stat. 1026, I respectfully dissent. I. The Court of Appeals Opinion In Petaluma I we held, among other things, that (1) we had jurisdiction to decide whether the partnership used to achieve the challenged tax benefits was a sham and/or lacked economic substance, (2) we also had jurisdiction to decide that the partners' outside bases

1238(a), 111 Stat. 1026, Congress amended sec. 6221 to include, as an item to be determined at the partnership level, the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to a partnership item, effective for partnership taxable years ending after Aug. 5, 1997. Consequently, we have jurisdiction

able years ending after Aug. 5, 1997, the partnership-level proceeding includes the determination of penalties, additions to tax, or additional amounts relating to an adjustment to partnership items. See Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 1238(a), 111 Stat. 1026. The sec. 6662(a) accuracy-related penalty in this proceeding, however, relates to 1996 (i.e., prior to the effective date of the amendment to sec. 6221) and is, thus, an affected item dependent on factual determinations t

equire partner level determinations. For the years at issue, the additions to tax for negligence are affected items requiring factual determinations at - 8 - the individual partner level. Id. at 745. The Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 1238, 111 Stat. 1026, amended sections 6221, 6226, and 6230 to provide that the partnership- level proceeding is now to include the determination of the applicability of any penalty or addition to tax relating to an adjustment to a partnership it

105-34, section 1238(a), 111 Stat.

n 6221 to provide that the applicability of any penalty, addition to tax, or additional amount that relates to an adjustment to a partnership item shall be determined at the partnership level. See Taxpayer - 19 - Relief Act of 1997, Pub. L. 105-34, sec. 1238(a), 111 Stat. 1026. However, the amendment to section 6221 is effective only for partnership taxable years ending after August 5, 1997. See H. Conf. Rept. 105-220, at 685 (1997) (effective for partnership taxable years ending after the date