Case: IRS Assessment of Indirect Partner Barred by Running of Statute of Limitations (T.C. Memo) (IRC §6229)

Tax attributable to partnership items detailed in an untimely TEFRA notice of final partnership administrative adjustment (FPAA) could not be assessed against an unidentified, indirect partner because the statutory period for assessment had expired, the U.S. Tax Court held in a memorandum opinion. A partner of American Milling, LP (petitioner), a second pass-through entity (American Boat, LLC) in which petitioner held an interest, and multiple other entities engaged in a series of transactions constituting a Son-of-Boss tax shelter. In 1999, the IRS issued a timely FPAA to American Boat for its 1998 tax year and ultimately prevailed on most issues ...