Court of federal claims' dismissal of plaintiffs-taxpayers' complaint that the IRS unlawfully denied their claim for a tax refund, involving an issuance of a Notice of Final Partnership Administrative Adjustment to each of plaintiffs' partnership, is affirmed as: 1) a 1997 settlement agreement did not change the FPAA's findings that the activities of the partnerships were sham transactions, the sham-transaction issue was not converted into a non-partnership item, and taxpayers' refund claims necessarily involve resolution of "partnership items"; and 2) thus, taxpayers lacked standing to seek adjudication, and the trial court correctly determined that it lacked jurisdiction over their refund claims.
Appeal from: United States Court of Federal Claims
Decided December 22, 2009
Opinion by Gajarsa, Circuit Judge
For Appellant: Thomas E. Redding, Redding & Associates, PC
For Appellee: Bruce R. Ellisen, Tax Division, US Department of Justice