Opinion
666-23
07-11-2023
403 EAST MARKET, LLC, GBX BANKSHOT, LLC, A PARTNER OTHER THAN THE TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND ORDER OF DISMISSAL FOR LACK OF JURISDICTION
Kathleen Kerrigan Chief Judge
On June 6, 2023, petitioner filed a Motion to Assign Rights to Prosecute.
By Order served June 15, 2023, the parties were directed to show cause in writing why this case should not be dismissed for lack of jurisdiction consistent with I.R.C. section 6226(b)(4). Respondent failed to do so.
On July 5, 2023, petitioner filed a Response to Order to Show Cause, in which petitioner asserts that an action was commenced by the tax matters partner within 90 days after the notice of final partnership administrative adjustment was mailed to the tax matters partner with respect to the partnership for the same taxable year as this case.
Pursuant to section 6226(a), a tax matters partner may file a petition for review of a notice of final partnership administrative adjustment within 90 days after the notice of final partnership administrative adjustment is mailed to the tax matters partner. If the tax matters partner does not file a petition contesting the notice of final partnership administrative adjustment within the 90-day period, any notice partner may within 60 days after the close of the 90-day period file a petition for review of the notice of final partnership administrative adjustment. §6226(b).
The tax matters partner timely filed a petition for review of the notice of final partnership administrative adjustment during the 90-day period. Therefore, petitioner's petition was improper.
Premises considered, it is ORDERED that petitioner's Motion to Assign Rights to Prosecute is denied as moot. It is further
ORDERED that the Court's Order to Show Cause dated June 15, 2023, is hereby made absolute. It is further
ORDERED that this case is dismissed for lack of jurisdiction on the ground that the tax matters partner timely filed a petition for review of the same notice of final partnership administrative adjustment within 90 days after the notice of final partnership administrative adjustment was mailed to the tax matters partner.
Petitioner is advised of the applicability of Tax Court Rule 245, which provides for the filing of a notice of election to participate in the action commenced by the tax matters partner.