In Wise Guys Holdings v. Commissioner, the Tax Court has ruled that a second Final Partnership Administrative Adjustment (FPAA) issued to the same Tax Matters Partner for the same tax period is invalid where the issuance was not a result of fraud, malfeasance, or misrepresentation of material fact. The invalid FPAA cannot confer jurisdiction on the court in a TEFRA action where neither the Tax Matters Partner nor a notice partner filed a timely petition in response to the first FPAA. The petition was dismissed.
Find out why the Wise Guys lost their bet on the second FPAA here:
Wise Guys Holdings, LLC v. Commissioner, 140 T.C. No. 8 (2013)