§1307

We hold they were; 3Former secs.

We hold they were; 3Former secs.

We hold they were; 3Former secs.

We hold they were; 3Former secs.

We hold they were; 3Former secs.

We hold they were; 3Former secs.

We hold they were; 3Former secs.

§ 1307(c) provides such a procedure for what bankruptcy law terms a “party in interest.” A party in interest like Karen might want to convert a chapter 13 bankruptcy—which generally allows a debtor to keep his property and reorganize his debts to be paid over time—to a chapter 7 bankruptcy that results in a liquidation of assets to more immediately

-248, sec. 402(a), 96 Stat. at 648, which required taxpayers to challenge an S corporation's taxes in a single, corporation-level proceeding, Congress repealed this part of TEFRA in the Small Business Job Protection Act of 1996, Pub. L. No. 104-188, sec. 1307(c)(1), 110 Stat. at 1781. Winter v. Commissioner, T.C. Memo. 2010-287, 100 T.C.M. (CCH) 604, 605 n.2 (2010). Accordingly, the Court has jurisdictionto address BSA's taxes as part ofpetitioners' shareholder-level proceeding. See Winter v. Co

b. L. No. 97-354, sec. 4(a), 96 Stat. at 1691. The SSRA provisions, enacted shortly after TEFRA -89- and set forth at former sections 6241 through 6245, have since been repealed by the Small Business Job Protection Act of 1996, Pub. L. No. 104-188, sec. 1307(c)(1), 110 Stat. at 1781, applicable to tax years beginning after December 31, 1996. Under SSRA, the TEFRA provisions that relate to partnership items and the judicial determination ofpartnership items were made applicable to subchapter S it

1307(c) (1), 110 Stat. 1781, and shareholders ike Winter may now challenge their S corporation's tax return in individual proceedings like this one. - 5 - bonus in 2002--the portion that Winter earned that year. See sec. 162(a) (1); sec. 1.162-9, Income Tax Regs. But Winter claims BFC, as a cash-basis taxpayer, should also have deducted anoth

1307, the bankruptcy court may dismiss a case for failure to file a timely repayment plan. 3The motion provided for sale proceeds to be distributed to creditors, including respondent. 4This amount represented the sale proceeds less legal fees and expenses. We note that Barbara Drake and petitioner were represented in the bankruptcy proceedings

after the TEFRA procedures as part of the Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691, the S Corporation procedures were repealed as of Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781. -13- more appropriately determined at the individual level because the determination depended upon factors that could not be determined at the corporate level and required participation of the allegedly true owner of

lled partnership audit procedures made applicable to subch. S corporations by sec. 4 of the Subchapter S Revision Act of 1982, Pub. L. 97-354, 96 Stat. 1669, 1691, 1697, effective for taxable years beginning after Dec. 31, 1982. This was repealed by sec. 1307(c)(1) of the Small Business Job Protection Act of 1996, Pub. L. 104-188, 110 Stat. 1755, 1781, 1787, effective for taxable (continued...) - 6 - In 1998, petitioner filed a petition under chapter 7 of the Bankruptcy Code. The bankruptcy trus

after the TEFRA procedures as part of the Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691. The S Corporation procedures were repealed as of Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781. 13 determinations in these cases. The determinations in Hang and Katz had no impact on the entity’s aggregate income, gain, loss, deductions, or credits. In the cases at hand, respondent’s alteration of the partners i

after the TEFRA procedures as part of the Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691. The S Corporation procedures were repealed as of Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781. 13 determinations in these cases. The determinations in Hano and Katz had no impact on the entity's aggregate income, gain, loss, deductions, or credits. In the cases at hand, respondent's alteration of the partners i

after the TEFRA procedures as part of the Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691. The S Corporation procedures were repealed as of Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781. 13 determinations in these cases. The determinations in Hang and Katz had no impact on the entity’s aggregate income, gain, loss, deductions, or credits. In the cases at hand, respondent’s alteration of the partners i

2This method of resolving disputes regarding subchapter S items was enacted by sec. 4 of the Subchapter S Revision Act of 1982, Pub. L. 97-354, 96 Stat. 1669, 1691, 1697, effective for taxable years beginning after Dec. 31, 1982. It was repealed by sec. 1307(c)(1) of the Small Business Job Protection Act of 1996, Pub. L. 104-188, 110 Stat. 1755, 1781, 1787, effective for taxable years beginning after Dec. 31, 1996. The year in issue in the instant cases is 1984, a year to which this method cont

2This method of resolving disputes regarding subchapter S items was enacted by sec. 4 of the Subchapter S Revision Act of 1982, Pub. L. 97-354, 96 Stat. 1669, 1691, 1697, effective for taxable years beginning after Dec. 31, 1982. It was repealed by sec. 1307(c)(1) of the Small Business Job Protection Act of 1996, Pub. L. 104-188, 110 Stat. 1755, 1781, 1787, effective for taxable years beginning after Dec. 31, 1996. The year in issue in the instant cases is 1984, a year to which this method cont

ter the TEFRA procedures as part of the Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691. (The S corporation procedures were repealed as of Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781.) Sec. 6244 makes certain provisions of the TEFRA procedures relating to partnership items applicable to subch. S items, except as modified or made inapplicable by the regulations. Among the incorporated provisions is s

ter the TEFRA procedures as part of the Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691. (The S corporation procedures were repealed as of Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781.) Sec. 6244 makes certain provisions of the TEFRA procedures relating to partnership items applicable to subch. S items, except as modified or made inapplicable by the regulations. Among the incorporated provisions is s

us. See discussion pp. 6-7, below. 3 The S corporation audit and litigation procedures (secs. 6241 through 6245) were repealed, effective for tax years beginning after Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781. Thus, petitioner’s fiscal year 1998 is not affected by those procedures. - 5 - 1997, and 1998 arise from respondent’s determination that petitioner is liable for the section 1374 built-in gains tax for franchise payme

ter the TEFRA procedures as part of the Subchapter S Revision Act of 1982, Pub. L. 97-354, sec. 4(a), 96 Stat. 1691. (The S corporation procedures were repealed as of Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781.) Sec. 6244 makes certain provisions of the TEFRA procedures relating to partnership items applicable to subch. S items, except as modified or made inapplicable by the regulations. Among the incorporated provisions is s

Subchapter S Revision Act of 1982, Pub. L. 97- 354, sec. 4(a), 96 Stat. 1691-1692, effective with respect to tax years beginning after Dec. 31, 1982. Secs. 6241-6245 were repealed under the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307 (c)(1), 110 Stat. 1755, effective with respect to tax years beginning after Dec. 31, 1996. -7- audit and litigation procedures generally are not applicable to a “small S corporation”, defined as an S corporation with five or fewer sharehold

to S corporations); N.C.F. Energy Partners v. Commissioner, 89 T.C. 741, 744 (1987); see also Hang v. Commissioner, 95 T.C. 74 (1990). 3(...continued) beginning after Dec. 31, 1996, by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1781. - 7 - A. Shareholder Basis Section 301.6245-1T, Temporary Proced. & Admin. Regs., 52 Fed. Reg. 3003 (Jan. 30, 1987), provides a laundry list of subchapter S items; i.e., items that are required to be taken into accoun

On Jan. 31, 1997, P filed a motion for reconsideration with the bankruptcy court. On Feb. 12, 1997, the bankruptcy court issued an order granting P's motion for reconsideration and reinstating petitioner's case. On Mar. 3, 1997, petitioner filed a petition for redetermination with the Court. R filed a motion to dismiss for lack of

ified subchapter S audit and litigation provisions in effect for the year at issue, set forth at sections 6241 through 6245, are applicable. (Sections 6241 through 6245 were repealed by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1755, 1781, for tax years beginning after December 31, 1996.) If not, we must dismiss this case for lack of jurisdiction. See Albatrick, Inc. v. Commissioner, T.C. Memo. 1995-119. - 8 - The S corporation audit and litigatio

in pertinent part: THIS MATTER having come before the Court upon the Motion to Dismiss the Chapter 13 case filed by the Standing Chapter 13 Trustee, it is: ORDERED that the within case be and is hereby dismissed pursuant to the provisions of 11 USC Section 1307. FURTHER ORDERED that, in accordance with 11 USC Section 349(b)(1) and (2), any transfer avoided under Section 522, 544, 545, 547, 548, 549 or 724(a) of Title 11 or preserved under Section 510(c)(2), 522(f)(2) or 551 of Title 11 is reins

on. A small S corporation is defined as an S corporation with 5 or 5 Subchapter D, consisting of secs. 6241 through 6245, was repealed applicable to tax years beginning after Dec. 31, 1996. Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1307(c)(1), 110 Stat. 1755, 1781. - 6 - fewer shareholders, each of whom is a natural person or an estate. * * * The limitation is applied to the number of natural persons and estates that were shareholders at any one time during the taxable yea