United States Federal Circuit

In taxpayers' action for administrative refund claims with the IRS, arising from the IRS' investigation and subsequent issuance of Notices of Final Partnership Administrative Adjustment, relating to a number of limited partnerships managed by a corporation that promoted tax shelter partnerships during the 1980s, the Court of Federal Claims' dismissal of the claims is affirmed where: 1) the statute of limitations issue is a partnership item and the taxpayers were required to raise the limitations issue in the partnership-level proceeding prior to either entering settlement or stipulating to judgment in the Tax Court; and 2) because taxpayers' challenge to the penalty interest assessments is inherently a dispute over the proper characterization of the partnerships' transactions, this is barred by section 7422(h) from being litigated in the refund action before the Court of Federal Claims.

Appellate Information

• Decided 05/05/2010
• Published 05/05/2010

Judges

Court

• United States Federal Circuit

Counsel