-CITE-
26 USC CHAPTER 63 - ASSESSMENT 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
-HEAD-
CHAPTER 63 - ASSESSMENT
-MISC1-
Subchapter Sec.(!1)
A. In general 6201
B. Deficiency procedures in the case of income, estate,
gift, and certain excise taxes 6211
C. Tax treatment of partnership items 6221
D. Treatment of electing large partnerships 6240
AMENDMENTS
1997 - Pub. L. 105-34, title XII, Sec. 1222(c), Aug. 5, 1997, 111
Stat. 1019, added item for subchapter D.
1996 - Pub. L. 104-188, title I, Sec. 1307(c)(3)(C), Aug. 20,
1996, 110 Stat. 1782, struck out item for subchapter D "Tax
treatment of subchapter S items".
1982 - Pub. L. 97-354, Sec. 4(b), Oct. 19, 1982, 96 Stat. 1692,
added item for subchapter D.
Pub. L. 97-248, title IV, Sec. 402(b), Sept. 3, 1982, 96 Stat.
667, added item for subchapter C.
1969 - Pub. L. 91-172, title I, Sec. 101(j)(63), Dec. 30, 1969,
83 Stat. 532, inserted reference to certain excise taxes in item
for subchapter B.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 6867, 7801 of this title.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - In General 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
SUBCHAPTER A - IN GENERAL
-MISC1-
Sec.
6201. Assessment authority.
6202. Establishment by regulations of mode or time of
assessment.
6203. Method of assessment.
6204. Supplemental assessments.
6205. Special rules applicable to certain employment taxes.
6206. Special rules applicable to excessive claims under
sections 6420, 6421, and 6427.
6207. Cross references.
AMENDMENTS
1983 - Pub. L. 97-424, title V, Sec. 515(b)(3)(B), Jan. 6, 1983,
96 Stat. 2181, struck out reference to section 6424 in item 6206.
1970 - Pub. L. 91-258, title II, Sec. 207(d)(11), May 21, 1970,
84 Stat. 249, inserted reference to section 6427 in item 6206.
1965 - Pub. L. 89-44, title II, Sec. 202(c)(2)(B), June 21, 1965,
79 Stat. 139, substituted "6420, 6421, and 6424" for "6420 and
6421" in item 6206.
1956 - Act June 29, 1956, ch. 462, title II, Sec. 208(e)(3), 70
Stat. 397, substituted "sections 6420 and 6421" for "section 6420"
in item 6206.
Act Apr. 2, 1956, ch. 160, Sec. 4(b)(2), 70 Stat. 91, inserted
item "6206. Special rules applicable to excessive claims under
section 6420", and renumbered former item 6206 as 6207.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in section 7851 of this title.
-End-
-CITE-
26 USC Sec. 6201 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
Sec. 6201. Assessment authority
-STATUTE-
(a) Authority of Secretary
The Secretary is authorized and required to make the inquiries,
determinations, and assessments of all taxes (including interest,
additional amounts, additions to the tax, and assessable penalties)
imposed by this title, or accruing under any former internal
revenue law, which have not been duly paid by stamp at the time and
in the manner provided by law. Such authority shall extend to and
include the following:
(1) Taxes shown on return
The Secretary shall assess all taxes determined by the taxpayer
or by the Secretary as to which returns or lists are made under
this title.
(2) Unpaid taxes payable by stamp
(A) Omitted stamps
Whenever any article upon which a tax is required to be paid
by means of a stamp is sold or removed for sale or use by the
manufacturer thereof or whenever any transaction or act upon
which a tax is required to be paid by means of a stamp occurs
without the use of the proper stamp, it shall be the duty of
the Secretary, upon such information as he can obtain, to
estimate the amount of tax which has been omitted to be paid
and to make assessment therefor upon the person or persons the
Secretary determines to be liable for such tax.
(B) Check or money order not duly paid
In any case in which a check or money order received under
authority of section 6311 as payment for stamps is not duly
paid, the unpaid amount may be immediately assessed as if it
were a tax imposed by this title, due at the time of such
receipt, from the person who tendered such check or money
order.
(3) Erroneous income tax prepayment credits
If on any return or claim for refund of income taxes under
subtitle A there is an overstatement of the credit for income tax
withheld at the source, or of the amount paid as estimated income
tax, the amount so overstated which is allowed against the tax
shown on the return or which is allowed as a credit or refund may
be assessed by the Secretary in the same manner as in the case of
a mathematical or clerical error appearing upon the return,
except that the provisions of section 6213(b)(2) (relating to
abatement of mathematical or clerical error assessments) shall
not apply with regard to any assessment under this paragraph.
(b) Amount not to be assessed
(1) Estimated income tax
No unpaid amount of estimated income tax required to be paid
under section 6654 or 6655 shall be assessed.
(2) Federal unemployment tax
No unpaid amount of Federal unemployment tax for any calendar
quarter or other period of a calendar year, computed as provided
in section 6157, shall be assessed.
(c) Compensation of child
Any income tax under chapter 1 assessed against a child, to the
extent attributable to amounts includible in the gross income of
the child, and not of the parent, solely by reason of section
73(a), shall, if not paid by the child, for all purposes be
considered as having also been properly assessed against the
parent.
(d) Required reasonable verification of information returns
In any court proceeding, if a taxpayer asserts a reasonable
dispute with respect to any item of income reported on an
information return filed with the Secretary under subpart B or C of
part III of subchapter A of chapter 61 by a third party and the
taxpayer has fully cooperated with the Secretary (including
providing, within a reasonable period of time, access to and
inspection of all witnesses, information, and documents within the
control of the taxpayer as reasonably requested by the Secretary),
the Secretary shall have the burden of producing reasonable and
probative information concerning such deficiency in addition to
such information return.
(e) Deficiency proceedings
For special rules applicable to deficiencies of income,
estate, gift, and certain excise taxes, see subchapter B.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 767; Pub. L. 89-44, title VIII,
Sec. 809(d)(4)(A), June 21, 1965, 79 Stat. 168; Pub. L. 91-53, Sec.
2(b), Aug. 7, 1969, 83 Stat. 92; Pub. L. 91-172, title I, Sec.
101(j)(38), Dec. 30, 1969, 83 Stat. 530; Pub. L. 91-258, title II,
Sec. 207(d)(1), (2), May 21, 1970, 84 Stat. 248; Pub. L. 93-406,
title II, Sec. 1016(a)(8), Sept. 2, 1974, 88 Stat. 929; Pub. L.
94-12, title II, Sec. 204(b)(2), Mar. 29, 1975, 89 Stat. 31; Pub.
L. 94-455, title XII, Sec. 1206(c)(2), title XIII, Sec.
1307(d)(2)(D), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1704, 1727, 1834; Pub. L. 97-424, title V, Sec. 515(b)(6)(E),
Jan. 6, 1983, 96 Stat. 2182; Pub. L. 98-76, title II, Sec.
231(b)(2)(A), Aug. 12, 1983, 97 Stat. 429; Pub. L. 98-369, div. A,
title IV, Secs. 412(b)(5), 474(r)(32), July 18, 1984, 98 Stat. 792,
845; Pub. L. 100-203, title X, Sec. 10301(b)(3), Dec. 22, 1987, 101
Stat. 1330-429; Pub. L. 100-647, title I, Sec. 1015(r)(1), title
VII, Sec. 7106(c)(2), Nov. 10, 1988, 102 Stat. 3572, 3773; Pub. L.
104-168, title VI, Sec. 602(a), July 30, 1996, 110 Stat. 1463.)
-MISC1-
AMENDMENTS
1996 - Subsecs. (d), (e). Pub. L. 104-168 added subsec. (d) and
redesignated former subsec. (d) as (e).
1988 - Subsec. (a)(4). Pub. L. 100-647, Sec. 1015(r)(1), struck
out par. (4) which read as follows: "If on any return or claim for
refund of income taxes under subtitle A there is an overstatement
of the credit allowable by section 34 (relating to certain uses of
gasoline and special fuels) or section 32 (relating to earned
income), the amount so overstated which is allowed against the tax
shown on the return or which is allowed as a credit or refund may
be assessed by the Secretary in the same manner as in the case of a
mathematical or clerical error appearing upon the return, except
that the provisions of section 6213(b)(2) (relating to abatement of
mathematical or clerical error assessments) shall not apply with
regard to any assessment under this paragraph."
Subsec. (b)(2). Pub. L. 100-647, Sec. 7106(c)(2), struck out "or
tax imposed by section 3321" after "employment tax".
1987 - Subsec. (b)(1). Pub. L. 100-203 substituted "section 6654
or 6655" for "section 6154 or 6654".
1984 - Subsec. (a)(4). Pub. L. 98-369, Sec. 474(r)(32),
substituted "section 32 or 34" for "section 39 or 43" in heading,
and in text substituted "section 34" for "section 39" and "section
32" for "section 43".
Subsec. (b)(1). Pub. L. 98-369, Sec. 412(b)(5), amended par. (1)
generally, substituting "estimated income tax required to be paid
under section 6154 or 6654" for "estimated tax under section 6153
or 6154".
1983 - Subsec. (a)(4). Pub. L. 97-424 substituted "and special
fuels" for ", special fuels, and lubricating oil" after "gasoline".
Subsec. (b)(2). Pub. L. 98-76 substituted "Federal unemployment
tax or tax imposed by section 3321" for "Federal unemployment tax".
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (a)(3), (4). Pub. L. 94-455, Secs. 1206(c)(2),
1906(b)(13)(A), struck out "or his delegate" after "Secretary",
substituted "mathematical or clerical error" for "mathematical
error" after "the case of", and inserted ", except that the
provisions of section 6213(b)(2) (relating to abatement of
mathematical or clerical error assessments) shall not apply with
regard to any assessment under this paragraph" after "upon the
return".
Subsec. (d). Pub. L. 94-455, Sec. 1307(d)(2)(D), substituted "and
certain excise taxes" for "chapter 42, and chapter 43 taxes" after
"estate, gift".
1975 - Subsec. (a)(4). Pub. L. 94-12 inserted reference to
section 43 in heading and substituted "oil) or section 43 (relating
to earned income)," for "oil)," in text.
1974 - Subsec. (d). Pub. L. 93-406 inserted reference to chapter
43 taxes.
1970 - Subsec. (a)(4). Pub. L. 91-258 inserted provision for
overstatement of credit allowable by section 39 (relating to
certain uses of special fuels) in text and substituted "under
section 39" for "for use of gasoline" in heading.
1969 - Subsec. (b). Pub. L. 91-53 added subsec. (b) heading and
par. (2), and redesignated former subsec. (b), including its
heading, as par. (1).
Subsec. (d). Pub. L. 91-172 inserted reference to chapter 42
taxes.
1965 - Subsec. (a)(4). Pub. L. 89-44 added par. (4).
EFFECTIVE DATE OF 1996 AMENDMENT
Section 602(b) of Pub. L. 104-168 provided that: "The amendment
made by subsection (a) [amending this section] shall take effect on
the date of the enactment of this Act [July 30, 1996]."
EFFECTIVE DATE OF 1988 AMENDMENT
Section 1015(r)(4) of Pub. L. 100-647 provided that: "The
amendments made by this subsection [amending this section and
sections 6211 and 6213 of this title] shall apply to notices of
deficiencies mailed after the date of the enactment of this Act
[Nov. 10, 1988]."
Amendment by section 7106(c)(2) of Pub. L. 100-647 applicable to
remuneration paid after Dec. 31, 1988, see section 7106(d) of Pub.
L. 100-647, set out as a note under section 3321 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable to taxable years
beginning after Dec. 31, 1987, see section 10301(c) of Pub. L.
100-203, set out as a note under section 585 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 412(b)(5) of Pub. L. 98-369 applicable with
respect to taxable years beginning after Dec. 31, 1984, see section
414(a)(1) of Pub. L. 98-369, set out as a note under section 6654
of this title.
Amendment by section 474(r)(32) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, and to carrybacks from
such years, see section 475(a) of Pub. L. 98-369, set out as a note
under section 21 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-76 applicable to remuneration paid after
June 30, 1986, see section 231(d) of Pub. L. 98-76, set out as an
Effective Date note under section 3321 of this title.
Amendment by Pub. L. 97-424 applicable with respect to articles
sold after Jan. 6, 1983, see section 515(c) of Pub. L. 97-424, set
out as a note under section 34 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1206(c)(2) of Pub. L. 94-455 applicable with
respect to returns filed after Dec. 31, 1976, see section 1206(d)
of Pub. L. 94-455, set out as a note under section 6213 of this
title.
Amendment by section 1307(d)(2)(D) of Pub. L. 94-455 effective on
and after Oct. 4, 1976, see section 1307(e) of Pub. L. 94-455, set
out as a note under section 501 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94-12 applicable to taxable years beginning
after Dec. 31, 1974, see section 209(b) of Pub. L. 94-12, as
amended, set out as a note under section 32 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-258 effective July 1, 1970, see section
211(a) of Pub. L. 91-258, set out as a note under section 4041 of
this title.
EFFECTIVE DATE OF 1969 AMENDMENTS
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
under section 4940 of this title.
Amendment by Pub. L. 91-53 applicable with respect to calendar
years beginning after Dec. 31, 1969, see section 4(a) of Pub. L.
91-53, set out as an Effective Date note under section 6157 of this
title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable to taxable years beginning
on or after July 1, 1965, see section 809(f) of Pub. L. 89-44, set
out as a note under section 6420 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 73, 5007, 6213 of this
title.
-End-
-CITE-
26 USC Sec. 6202 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
Sec. 6202. Establishment by regulations of mode or time of
assessment
-STATUTE-
If the mode or time for the assessment of any internal revenue
tax (including interest, additional amounts, additions to the tax,
and assessable penalties) is not otherwise provided for, the
Secretary may establish the same by regulations.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 768; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 6203 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
Sec. 6203. Method of assessment
-STATUTE-
The assessment shall be made by recording the liability of the
taxpayer in the office of the Secretary in accordance with rules or
regulations prescribed by the Secretary. Upon request of the
taxpayer, the Secretary shall furnish the taxpayer a copy of the
record of the assessment.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 768; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6303 of this title.
-End-
-CITE-
26 USC Sec. 6204 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
Sec. 6204. Supplemental assessments
-STATUTE-
(a) General rule
The Secretary may, at any time within the period prescribed for
assessment, make a supplemental assessment whenever it is
ascertained that any assessment is imperfect or incomplete in any
material respect.
(b) Restrictions on assessment
For restrictions on assessment of deficiencies in income,
estate, gift, and certain excise taxes, see section 6213.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 768; Pub. L. 93-406, title II,
Sec. 1016(a)(27), Sept. 2, 1974, 88 Stat. 932; Pub. L. 94-455,
title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
1974 - Subsec. (b). Pub. L. 93-406 substituted "gift, and certain
excise taxes" for "and gift taxes".
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, and, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
-End-
-CITE-
26 USC Sec. 6205 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
Sec. 6205. Special rules applicable to certain employment taxes
-STATUTE-
(a) Adjustment of tax
(1) General rule
If less than the correct amount of tax imposed by section 3101,
3111, 3201, 3221, or 3402 is paid with respect to any payment of
wages or compensation, proper adjustments, with respect to both
the tax and the amount to be deducted, shall be made, without
interest, in such manner and at such times as the Secretary may
by regulations prescribe.
(2) United States as employer
For purposes of this subsection, in the case of remuneration
received from the United States or a wholly-owned instrumentality
thereof during any calendar year, each head of a Federal agency
or instrumentality who makes a return pursuant to section 3122
and each agent, designated by the head of a Federal agency or
instrumentality, who makes a return pursuant to such section
shall be deemed a separate employer.
(3) Guam or American Samoa as employer
For purposes of this subsection, in the case of remuneration
received during any calendar year from the Government of Guam,
the Government of American Samoa, a political subdivision of
either, or any instrumentality of any one or more of the
foregoing which is wholly owned thereby, the Governor of Guam,
the Governor of American Samoa, and each agent designated by
either who makes a return pursuant to section 3125 shall be
deemed a separate employer.
(4) District of Columbia as employer
For purposes of this subsection, in the case of remuneration
received during any calendar year from the District of Columbia
or any instrumentality which is wholly owned thereby, the Mayor
of the District of Columbia and each agent designated by him who
makes a return pursuant to section 3125 shall be deemed a
separate employer.
(5) States and political subdivisions as employer
For purposes of this subsection, in the case of remuneration
received from a State or any political subdivision thereof (or
any instrumentality of any one or more of the foregoing which is
wholly owned thereby) during any calendar year, each head of an
agency or instrumentality, and each agent designated by either,
who makes a return pursuant to section 3125 shall be deemed a
separate employer.
(b) Underpayments
If less than the correct amount of tax imposed by section 3101,
3111, 3201, 3221, or 3402 is paid or deducted with respect to any
payment of wages or compensation and the underpayment cannot be
adjusted under subsection (a) of this section, the amount of the
underpayment shall be assessed and collected in such manner and at
such times (subject to the statute of limitations properly
applicable thereto) as the Secretary may by regulations prescribe.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 768; Pub. L. 86-778, title I,
Sec. 103(r)(1), Sept. 13, 1960, 74 Stat. 940; Pub. L. 89-97, title
III, Sec. 317(d), July 30, 1965, 79 Stat. 389; Pub. L. 94-455,
title XIX, Sec. 1906(a)(13), (b)(13)(A), Oct. 4, 1976, 90 Stat.
1825, 1834; Pub. L. 99-272, title XIII, Sec. 13205(a)(2)(D), Apr.
7, 1986, 100 Stat. 315.)
-MISC1-
AMENDMENTS
1986 - Subsec. (a)(5). Pub. L. 99-272 added par. (5).
1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary".
Subsec. (a)(4). Pub. L. 94-455, Sec. 1906(a)(13), substituted
"Mayor of the District of Columbia and each agent designated by
him" for "Commissioners of the District of Columbia and each agent
designated by them" after "owned thereby, the".
Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or
his delegate" after "Secretary".
1965 - Subsec. (a)(4). Pub. L. 89-97 added par. (4).
1960 - Subsec. (a)(3). Pub. L. 86-778 added par. (3).
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-272 applicable to services performed
after Mar. 31, 1986, see section 13205(d)(1) of Pub. L. 99-272, set
out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 effective on first day of first month
which begins more than 90 days after Oct. 4, 1976, see section
1906(d)(1) of Pub. L. 94-455, set out as a note under section 6013
of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-97 applicable with respect to services
performed after quarter ending Sept. 30, 1965, and after quarter in
which Secretary of the Treasury receives a certification from
Commissioners of District of Columbia expressing their desire to
have insurance system established by sections 401 et seq. and 1395c
et seq. of Title 42, The Public Health and Welfare, extended to
officers and employees coming under provisions of such amendments,
see section 317(g) of Pub. L. 89-97, set out as a note under
section 410 of Title 42.
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86-778 applicable only with respect to (1)
service in the employ of the Government of Guam or any political
subdivision thereof, or any instrumentality of any one or more of
the foregoing wholly owned thereby, which is performed after 1960
and after the calendar quarter in which the Secretary of the
Treasury receives a certification by the Governor of Guam that
legislation has been enacted by the Government of Guam expressing
its desire to have the insurance system established by title II of
the Social Security Act, section 401 et seq. of Title 42, The
Public Health and Welfare, extended to the officers and employees
of such Government and such political subdivisions and
instrumentalities, and (2) service in the employ of the Government
of American Samoa or any political subdivision thereof or any
instrumentality of any one or more of the foregoing wholly owned
thereby, which is performed after 1960 and after the calendar
quarter in which the Secretary of the Treasury receives a
certification by the Governor of American Samoa that the Government
of American Samoa desires to have the insurance system established
by title II of the Social Security Act, section 401 et seq. of
Title 42, extended to the officers and employees of such Government
and such political subdivisions and instrumentalities, see section
103(v)(1) of Pub. L. 86-778, set out as a note under section 402 of
Title 42.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6601 of this title.
-End-
-CITE-
26 USC Sec. 6206 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
Sec. 6206. Special rules applicable to excessive claims under
sections 6420, 6421, and 6427
-STATUTE-
Any portion of a payment made under section 6420, 6421, or 6427
which constitutes an excessive amount (as defined in section
6675(b)), and any civil penalty provided by section 6675, may be
assessed and collected as if it were a tax imposed by section 4081
(with respect to payments under sections 6420 and 6421), or 4041,
4081, or 4091 (with respect to payments under section 6427) and as
if the person who made the claim were liable for such tax. The
period for assessing any such portion, and for assessing any such
penalty, shall be 3 years from the last day prescribed for the
filing of the claim under section 6420, 6421, or 6427, as the case
may be.
-SOURCE-
(Added Apr. 2, 1956, ch. 160, Sec. 4(b)(1), 70 Stat. 90; amended
June 29, 1956, ch. 462, title II, Sec. 208(d)(1), 70 Stat. 396;
Pub. L. 89-44, title II, Sec. 202(c)(2)(A), June 21, 1965, 79 Stat.
139; Pub. L. 91-258, title II, Sec. 207(d)(3), May 21, 1970, 84
Stat. 248; Pub. L. 97-424, title V, Sec. 515(b)(3)(A), Jan. 6,
1983, 96 Stat. 2181; Pub. L. 100-203, title X, Sec. 10502(d)(5),
Dec. 22, 1987, 101 Stat. 1330-444; Pub. L. 103-66, title XIII, Sec.
13242(d)(14), Aug. 10, 1993, 107 Stat. 524.)
-MISC1-
PRIOR PROVISIONS
A prior section 6206 was renumbered 6207 of this title.
AMENDMENTS
1993 - Pub. L. 103-66 substituted "4041, 4081, or 4091" for "4041
or 4091".
1987 - Pub. L. 100-203 substituted "or 4041 or 4091" for "or
4041".
1983 - Pub. L. 97-424 struck out reference to section 6424 in
section catchline, and in text struck out "4091 (with respect to
payments under section 6424)," after "6421),", and "6424," wherever
appearing.
1970 - Pub. L. 91-258 inserted reference to section 6427 in
section catchline, inserted reference to section 6427 in first and
second sentences, and substituted "by section 4081 (with respect to
payments under sections 6420 and 6421), 4091 (with respect to
payments under section 6424), or 4041 (with respect to payments
under section 6427)" for "by section 4081 (or, in the case of
lubricating oil, by section 4091)", in first sentence,
respectively.
1965 - Pub. L. 89-44 struck out "6420 and 6421" wherever
appearing in section catchline and text and substituted therefor
"6420, 6421, and 6424" and inserted "(or, in the case of
lubricating oil, by section 4091)" after "4081" in text.
1956 - Act June 29, 1956, inserted reference to excessive claims
under section 6421 in section catchline and text.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section
13242(e) of Pub. L. 103-66, set out as a note under section 4041 of
this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable to sales after Mar. 31,
1988, see section 10502(e) of Pub. L. 100-203, set out as a note
under section 40 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-424 applicable with respect to articles
sold after Jan. 6, 1983, see section 515(c) of Pub. L. 97-424, set
out as a note under section 34 of this title.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-258 effective July 1, 1970, see section
211(a) of Pub. L. 91-258, set out as a note under section 4041 of
this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
701(a)(1), (2) of Pub. L. 89-44, set out as a note under section
4161 of this title.
EFFECTIVE DATE OF 1956 AMENDMENT
Amendment by act June 29, 1956, effective June 29, 1956, see
section 211 of act June 29, 1956, set out as a note under section
4041 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6504, 6675 of this title.
-End-
-CITE-
26 USC Sec. 6207 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter A - In General
-HEAD-
Sec. 6207. Cross references
-STATUTE-
(1) For prohibition of suits to restrain assessment of any
tax, see section 7421.
(2) For prohibition of assessment of taxes against insolvent
banks, see section 7507.
(3) For assessment where property subject to tax has been
sold in a distraint proceeding without the tax having been
assessed prior to such sale, see section 6342.
(4) For assessment with respect to taxes required to be paid
by chapter 52, see section 5703.
(5) For assessment in case of distilled spirits removed from
place where distilled and not deposited in bonded warehouse,
see section 5006(c).
(6) For period of limitation upon assessment, see chapter 66.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 769, Sec. 6206; renumbered Sec.
6207, Apr. 2, 1956, ch. 160, Sec. 4(b)(1), 70 Stat. 90; amended
Pub. L. 85-859, title II, Sec. 204(2), (3), Sept. 2, 1958, 72 Stat.
1428; Pub. L. 94-455, title XIX, Sec. 1906(a)(14), Oct. 4, 1976, 90
Stat. 1825.)
-MISC1-
AMENDMENTS
1976 - Par. (7). Pub. L. 94-455 struck out par. (7) relating to
cross reference for assessment under the provisions of the Tariff
Act of 1930.
1958 - Par. (4). Pub. L. 85-859, Sec. 204(2), substituted "with
respect to taxes required to be paid by chapter 52, see section
5703" for "in case of sale or removal of tobacco, snuff, cigars,
and cigarettes without the use of the proper stamps, see section
5703(d)".
Pars. (6) to (9). Pub. L. 85-859, Sec. 204(3), redesignated pars.
(8) and (9) as (6) and (7), respectively, and struck out former
pars. (6) and (7) which contained cross references relating to
assessments in case of certain spirits subject to excessive leakage
and to assessment of deficiencies in production of distilled
spirits.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section
210(a)(1) of Pub. L. 85-859, set out as an Effective Date note
under section 5001 of this title.
-End-
-CITE-
26 USC Subchapter B - Deficiency Procedures in the Case
of Income, Estate, Gift, and Certain Excise
Taxes 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate,
Gift, and Certain Excise Taxes
-HEAD-
SUBCHAPTER B - DEFICIENCY PROCEDURES IN THE CASE OF INCOME, ESTATE,
GIFT, AND CERTAIN EXCISE TAXES
-MISC1-
Sec.
6211. Definition of a deficiency.
6212. Notice of deficiency.
6213. Restrictions applicable to deficiencies; petition to
Tax Court.
6214. Determinations by Tax Court.
6215. Assessment of deficiency found by Tax Court.
6216. Cross references.
AMENDMENTS
1969 - Pub. L. 91-172, title I, Sec. 101(j)(62), Dec. 30, 1969,
83 Stat. 532, inserted reference to certain excise taxes in
subchapter heading.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 32, 6230, 6234, 6241,
6601, 6662, 6665, 6677, 6679, 6682, 6693, 6696, 6697, 6698, 6703,
6706, 6713, 6716, 7463, 7611 of this title.
-End-
-CITE-
26 USC Sec. 6211 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate,
Gift, and Certain Excise Taxes
-HEAD-
Sec. 6211. Definition of a deficiency
-STATUTE-
(a) In general
For purposes of this title in the case of income, estate, and
gift taxes imposed by subtitles A and B and excise taxes imposed by
chapters 41, 42, 43, and 44 the term "deficiency" means the amount
by which the tax imposed by subtitle A or B, or chapter 41, 42, 43,
or 44 exceeds the excess of -
(1) the sum of
(A) the amount shown as the tax by the taxpayer upon his
return, if a return was made by the taxpayer and an amount was
shown as the tax by the taxpayer thereon, plus
(B) the amounts previously assessed (or collected without
assessment) as a deficiency, over -
(2) the amount of rebates, as defined in subsection (b)(2),
made.
(b) Rules for application of subsection (a)
For purposes of this section -
(1) The tax imposed by subtitle A and the tax shown on the
return shall both be determined without regard to payments on
account of estimated tax, without regard to the credit under
section 31, without regard to the credit under section 33, and
without regard to any credits resulting from the collection of
amounts assessed under section 6851 or 6852 (relating to
termination assessments).
(2) The term "rebate" means so much of an abatement, credit,
refund, or other repayment, as was made on the ground that the
tax imposed by subtitle A or B or chapter 41, 42, 43, or 44 was
less than the excess of the amount specified in subsection (a)(1)
over the rebates previously made.
(3) The computation by the Secretary, pursuant to section 6014,
of the tax imposed by chapter 1 shall be considered as having
been made by the taxpayer and the tax so computed considered as
shown by the taxpayer upon his return.
(4) For purposes of subsection (a) -
(A) any excess of the sum of the credits allowable under
sections 24(d), 32, and 34 over the tax imposed by subtitle A
(determined without regard to such credits), and
(B) any excess of the sum of such credits as shown by the
taxpayer on his return over the amount shown as the tax by the
taxpayer on such return (determined without regard to such
credits),
shall be taken into account as negative amounts of tax.
(c) Coordination with subchapters C and D
In determining the amount of any deficiency for purposes of this
subchapter, adjustments to partnership items shall be made only as
provided in subchapters C and D.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 770; Pub. L. 89-44, title VIII,
Sec. 809(d)(5)(A), June 21, 1965, 79 Stat. 168; Pub. L. 89-368,
title I, Sec. 102(b)(4), Mar. 15, 1966, 80 Stat. 64; Pub. L.
91-172, title I, Sec. 101(f)(1), (j)(39), Dec. 30, 1969, 83 Stat.
524, 530; Pub. L. 93-406, title II, Sec. 1016(a)(9), Sept. 2, 1974,
88 Stat. 929; Pub. L. 94-455, title XII, Sec. 1204(c)(4), title
XIII, Sec. 1307(d)(2)(E), (F)(i), title XVI, Sec. 1605(b)(4), title
XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1698, 1728, 1754,
1834; Pub. L. 96-223, title I, Sec. 101(f)(1)(A), (B), (2), (3),
Apr. 2, 1980, 94 Stat. 252; Pub. L. 98-369, div. A, title IV, Sec.
474(r)(33), July 18, 1984, 98 Stat. 845; Pub. L. 100-203, title X,
Sec. 10713(b)(2)(B), Dec. 22, 1987, 101 Stat. 1330-470; Pub. L.
100-418, title I, Sec. 1941(b)(2)(B)(i), (ii), (C), (D), Aug. 23,
1988, 102 Stat. 1323; Pub. L. 100-647, title I, Sec. 1015(r)(2),
Nov. 10, 1988, 102 Stat. 3572; Pub. L. 105-34, title XII, Sec.
1231(b), Aug. 5, 1997, 111 Stat. 1023; Pub. L. 105-206, title VI,
Sec. 6012(f), July 22, 1998, 112 Stat. 819; Pub. L. 106-554, Sec.
1(a)(7) [title III, Sec. 314(a)], Dec. 21, 2000, 114 Stat. 2763,
2763A-643.)
-MISC1-
AMENDMENTS
2000 - Subsec. (b)(4)(A). Pub. L. 106-554 substituted "sections
24(d), 32, and 34" for "sections 32 and 34".
1998 - Subsec. (c). Pub. L. 105-206 substituted "subchapters C
and D" for "subchapter C" in heading and in text.
1997 - Subsec. (c). Pub. L. 105-34 added subsec. (c).
1988 - Subsec. (a). Pub. L. 100-418, Sec. 1941(b)(2)(B)(i), (C),
in introductory provisions, substituted "and 44" for "44, and 45"
and "or 44" for "44, or 45".
Subsec. (b)(2). Pub. L. 100-418, Sec. 1941(b)(2)(B)(ii),
substituted "or 44" for "44, or 45".
Subsec. (b)(4). Pub. L. 100-647, Sec. 1015(r)(2), amended par.
(4) generally. Prior to amendment, par. (4) read as follows: "The
tax imposed by subtitle A and the tax shown on the return shall
both be determined without regard to the credit under section 34,
unless, without regard to such credit, the tax imposed by subtitle
A exceeds the excess of the amount specified in subsection (a)(1)
over the amount specified in subsection (a)(2)."
Subsec. (b)(5), (6). Pub. L. 100-418, Sec. 1941(b)(2)(D), struck
out pars. (5) and (6) which read as follows:
"(5) The amount withheld under section 4995(a) from amounts
payable to any producer for crude oil removed during any taxable
period (as defined in section 4996(b)(7)) which is not otherwise
shown on a return by such producer shall be treated as tax shown by
the producer on a return for the taxable period.
"(6) Any liability to pay amounts required to be withheld under
section 4995(a) shall not be treated as a tax imposed by chapter
45."
1987 - Subsec. (b)(1). Pub. L. 100-203 inserted reference to
section 6852.
1984 - Subsec. (b)(1). Pub. L. 98-369, Sec. 474(r)(33)(A),
substituted "without regard to the credit under section 33" for
"without regard to so much of the credit under section 32 as
exceeds 2 percent of the interest on obligations described in
section 1451".
Subsec. (b)(4). Pub. L. 98-369, Sec. 474(r)(33)(B), substituted
"section 34" for "section 39".
1980 - Subsec. (a). Pub. L. 96-223, Sec. 101(f)(1)(A), (2),
inserted references to chapter 45 in provisions preceding par. (1).
Subsec. (b)(2). Pub. L. 96-223, Sec. 101(f)(1)(B), inserted
reference to chapter 45.
Subsec. (b)(5), (6). Pub. L. 96-223, Sec. 101(f)(3), added pars.
(5) and (6).
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1307(d)(2)(E), (F)(i),
1605(b)(4)(A), (B), substituted "chapters 41, 42, 43, and 44" for
"chapters 42 and 43" after "taxes imposed by" and "chapter 41, 42,
43, or 44" for "chapter 42 or 43" after "A or B, or".
Subsec. (b)(1). Pub. L. 94-455, Sec. 1204(c)(4), struck out "and"
after "31" and inserted ", and without regard to any credits
resulting from the collection of amounts assessed under section
6851 (relating to termination assessments)" after "section 1451".
Subsec. (b)(2). Pub. L. 94-455, Secs. 1307(d)(2)(F)(i),
1605(b)(4)(C), substituted "chapter 41, 42, 43, or 44" for "chapter
42 or 43" after "A or B or".
Subsec. (b)(3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
"or his delegate" after "Secretary".
1974 - Subsec. (a). Pub. L. 93-406, Sec. 1016(a)(9)(A), inserted
reference in introductory provisions to taxes imposed by chapter
43.
Subsec. (b)(2). Pub. L. 93-406, Sec. 1016(a)(9)(B), inserted
reference to taxes imposed by chapter 43.
1969 - Subsec. (a). Pub. L. 91-172, Sec. 101(f)(1), inserted
references to excise taxes and chapter 42.
Subsec. (b)(2). Pub. L. 91-172, Sec. 101(j)(39), inserted
reference to chapter 42.
1966 - Subsec. (b)(1). Pub. L. 89-368 substituted "subtitle A"
for "chapter 1".
1965 - Subsec. (b)(4). Pub. L. 89-44 added par. (4).
EFFECTIVE DATE OF 2000 AMENDMENT
Amendment by Pub. L. 106-554 effective as if included in the
provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to
which such amendment relates, see section 1(a)(7) [title III, Sec.
314(g)] of Pub. L. 106-554, set out as a note under section 56 of
this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1231(d) of Pub. L. 105-34 provided that: "The amendments
made by this section [enacting section 6234 of this title and
amending this section] shall apply to partnership taxable years
ending after the date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by Pub. L. 100-647 applicable to notices of
deficiencies mailed after Nov. 10, 1988, see section 1015(r)(4) of
Pub. L. 100-647, set out as a note under section 6201 of this
title.
Amendment by Pub. L. 100-418 applicable to crude oil removed from
the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.
L. 100-418, set out as a note under section 164 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxable years beginning
after Dec. 31, 1983, and to carrybacks from such years, see section
475(a) of Pub. L. 98-369, set out as a note under section 21 of
this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1204(c)(4) of Pub. L. 94-455 applicable to
action taken under section 6851, 6861, or 6862 of this title where
the notice and demand takes place after Feb. 28, 1977, see section
1204(d) of Pub. L. 94-455, as amended, set out as a note under
section 6851 of this title.
Amendment by section 1307(d)(2)(E), (F)(i) of Pub. L. 94-455
effective on and after Oct. 4, 1976, see section 1307(e)(6) of Pub.
L. 94-455, set out as a note under section 501 of this title.
For effective date of amendment by section 1605(b)(4) of Pub. L.
94-455, see section 1608(d)(1) of Pub. L. 94-455, set out as a note
under section 856 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
under section 4940 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-368 applicable with respect to taxable
years beginning after Dec. 31, 1966, see section 102(d) of Pub. L.
89-368, set out as a note under section 6654 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable to taxable years beginning
on or after July 1, 1965, see section 809(f) of Pub. L. 89-44, set
out as a note under section 6420 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1314, 6213, 6234, 6503,
6601, 6662, 6665, 6861 of this title.
-End-
-CITE-
26 USC Sec. 6212 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate,
Gift, and Certain Excise Taxes
-HEAD-
Sec. 6212. Notice of deficiency
-STATUTE-
(a) In general
If the Secretary determines that there is a deficiency in respect
of any tax imposed by subtitles A or B or chapter 41, 42, 43, or 44
he is authorized to send notice of such deficiency to the taxpayer
by certified mail or registered mail. Such notice shall include a
notice to the taxpayer of the taxpayer's right to contact a local
office of the taxpayer advocate and the location and phone number
of the appropriate office.
(b) Address for notice of deficiency
(1) Income and gift taxes and certain excise taxes
In the absence of notice to the Secretary under section 6903 of
the existence of a fiduciary relationship, notice of a deficiency
in respect of a tax imposed by subtitle A, chapter 12, chapter
41, chapter 42, chapter 43, or chapter 44 if mailed to the
taxpayer at his last known address, shall be sufficient for
purposes of subtitle A, chapter 12, chapter 41, chapter 42,
chapter 43, chapter 44, and this chapter even if such taxpayer is
deceased, or is under a legal disability, or, in the case of a
corporation, has terminated its existence.
(2) Joint income tax return
In the case of a joint income tax return filed by husband and
wife, such notice of deficiency may be a single joint notice,
except that if the Secretary has been notified by either spouse
that separate residences have been established, then, in lieu of
the single joint notice, a duplicate original of the joint notice
shall be sent by certified mail or registered mail to each spouse
at his last known address.
(3) Estate tax
In the absence of notice to the Secretary under section 6903 of
the existence of a fiduciary relationship, notice of a deficiency
in respect of a tax imposed by chapter 11, if addressed in the
name of the decedent or other person subject to liability and
mailed to his last known address, shall be sufficient for
purposes of chapter 11 and of this chapter.
(c) Further deficiency letters restricted
(1) General rule
If the Secretary has mailed to the taxpayer a notice of
deficiency as provided in subsection (a), and the taxpayer files
a petition with the Tax Court within the time prescribed in
section 6213(a), the Secretary shall have no right to determine
any additional deficiency of income tax for the same taxable
year, of gift tax for the same calendar year, of estate tax in
respect of the taxable estate of the same decedent, of chapter 41
tax for the same taxable year, of chapter 43 tax for the same
taxable year, of chapter 44 tax for the same taxable year, of
section 4940 tax for the same taxable year, or of chapter 42 tax,
(other than under section 4940) with respect to any act (or
failure to act) to which such petition relates, except in the
case of fraud, and except as provided in section 6214(a)
(relating to assertion of greater deficiencies before the Tax
Court), in section 6213(b)(1) (relating to mathematical or
clerical errors), in section 6851 or 6852 (relating to
termination assessments), or in section 6861(c) (relating to the
making of jeopardy assessments).
(2) Cross references
For assessment as a deficiency notwithstanding the
prohibition of further deficiency letters, in the case of -
(A) Deficiency attributable to change of treatment with
respect to itemized deductions, see section 63(e)(3).
(B) Deficiency attributable to gain on involuntary
conversion, see section 1033(a)(2)(C) and (D).
(C) Deficiency attributable to activities not engaged in
for profit, see section 183(e)(4).
For provisions allowing determination of tax in title 11
cases, see section 505(a) of title 11 of the United States
Code.
(d) Authority to rescind notice of deficiency with taxpayer's
consent
The Secretary may, with the consent of the taxpayer, rescind any
notice of deficiency mailed to the taxpayer. Any notice so
rescinded shall not be treated as a notice of deficiency for
purposes of subsection (c)(1) (relating to further deficiency
letters restricted), section 6213(a) (relating to restrictions
applicable to deficiencies; petition to Tax Court), and section
6512(a) (relating to limitations in case of petition to Tax Court),
and the taxpayer shall have no right to file a petition with the
Tax Court based on such notice. Nothing in this subsection shall
affect any suspension of the running of any period of limitations
during any period during which the rescinded notice was
outstanding.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 770; Pub. L. 85-866, title I,
Secs. 76, 89(b), Sept. 2, 1958, 72 Stat. 1661, 1665; Pub. L.
88-272, title I, Sec. 112(d)(1), Feb. 26, 1964, 78 Stat. 24; Pub.
L. 91-172, title I, Sec. 101(f)(2), (j)(40), (41), Dec. 30, 1969,
83 Stat. 524, 530; Pub. L. 91-614, title I, Sec. 102(d)(5), Dec.
31, 1970, 84 Stat. 1842; Pub. L. 93-406, title II, Sec.
1016(a)(10), Sept. 2, 1974, 88 Stat. 930; Pub. L. 94-455, title II,
Sec. 214(b), title XII, Secs. 1204(c)(5), 1206(c)(3), title XIII,
Sec. 1307(d)(2)(F)(ii), (G), title XVI, Sec. 1605(b)(5), title XIX,
Secs. 1901(b)(31)(C), (37)(C), 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1549, 1698, 1704, 1728, 1754, 1800, 1803, 1834; Pub. L.
95-30, title I, Sec. 101(d)(15), May 23, 1977, 91 Stat. 134; Pub.
L. 95-600, title IV, Sec. 405(c)(5), title VII, Sec. 701(t)(3)(C),
Nov. 6, 1978, 92 Stat. 2871, 2912; Pub. L. 96-223, title I, Sec.
101(f)(1)(C), (4), (5), Apr. 2, 1980, 94 Stat. 252, 253; Pub. L.
96-589, Sec. 6(d)(2), Dec. 24, 1980, 94 Stat. 3408; Pub. L. 97-34,
title IV, Sec. 442(d)(4), Aug. 13, 1981, 95 Stat. 323; Pub. L.
99-514, title I, Sec. 104(b)(17), title XV, Sec. 1562(a), Oct. 22,
1986, 100 Stat. 2106, 2761; Pub. L. 100-203, title X, Sec.
10713(b)(2)(C), Dec. 22, 1987, 101 Stat. 1330-470; Pub. L. 100-418,
title I, Sec. 1941(b)(2)(B)(iii), (E), (F), Aug. 23, 1988, 102
Stat. 1323; Pub. L. 100-647, title I, Sec. 1015(m), Nov. 10, 1988,
102 Stat. 3572; Pub. L. 105-34, title III, Sec. 312(d)(12), Aug. 5,
1997, 111 Stat. 840; Pub. L. 105-206, title I, Sec. 1102(b), July
22, 1998, 112 Stat. 703.)
-MISC1-
AMENDMENTS
1998 - Subsec. (a). Pub. L. 105-206 inserted at end "Such notice
shall include a notice to the taxpayer of the taxpayer's right to
contact a local office of the taxpayer advocate and the location
and phone number of the appropriate office."
1997 - Subsec. (c)(2)(C) to (E). Pub. L. 105-34, which directed
the amendment of par. (2) by striking out subpar. (C) and
redesignating succeeding subpars. accordingly, was executed by
redesignating subpar. (E) as (C) and striking out former subpar.
(C). Prior to amendment, subpar. (C) read as follows: "Deficiency
attributable to gain on sale or exchange of principal residence,
see section 1034(j)." Former subpar. (D) was repealed previously.
1988 - Subsec. (a). Pub. L. 100-418, Sec. 1941(b)(2)(B)(iii),
substituted "or 44" for "44, or 45".
Subsec. (b)(1). Pub. L. 100-418, Sec. 1941(b)(2)(E), substituted
"or chapter 44" for "chapter 44, or chapter 45" and "chapter 44,
and this chapter" for "chapter 44, chapter 45, and this chapter".
Subsec. (c)(1). Pub. L. 100-418, Sec. 1941(b)(2)(F), substituted
"or of chapter 42 tax" for "of chapter 42 tax" and struck out ", or
of chapter 45 tax for the same taxable period" after "such petition
relates".
Subsec. (d). Pub. L. 100-647 inserted sentence at end that
nothing in this subsection shall affect suspension of running of
period of limitations during period during which rescinded notice
was outstanding.
1987 - Subsec. (c)(1). Pub. L. 100-203 inserted reference to
section 6852.
1986 - Subsec. (c)(2)(A). Pub. L. 99-514, Sec. 104(b)(17),
amended subpar. (A) generally, substituting ", see section
63(e)(3)" for "and zero bracket amount, see section 63(g)(5)".
Subsec. (d). Pub. L. 99-514, Sec. 1562(a), added subsec. (d).
1981 - Subsec. (c)(1). Pub. L. 97-34 substituted "calendar year"
for "calendar quarter".
1980 - Subsec. (a). Pub. L. 96-223, Sec. 101(f)(1)(C), inserted
reference to chapter 45.
Subsec. (b)(1). Pub. L. 96-223, Sec. 101(f)(4), substituted "and
certain excise taxes" for "taxes imposed by chapter 42" in section
catchline and inserted references to chapter 45 in two places in
text.
Subsec. (c)(1). Pub. L. 96-223, Sec. 101(f)(5), substituted "of
chapter 42 tax" for "or of chapter 42 tax" and inserted ", or of
chapter 45 tax for the same taxable period" after "to which such
petition relates".
Subsec. (c)(2). Pub. L. 96-589 inserted cross reference to
section 505(a) of title 11 for provisions allowing determination of
tax in title 11 cases.
1978 - Subsec. (c)(1). Pub. L. 95-600, Sec. 701(t)(3)(C),
substituted "same taxable year" for "same taxable years" in two
places.
Subsec. (c)(2)(C). Pub. L. 95-600, Sec. 405(c)(5), substituted
"principal residence" for "personal residence".
1977 - Subsec. (c)(2)(A). Pub. L. 95-30 substituted "change of
treatment with respect to itemized deductions and zero bracket
amount, see section 63(g)(5)" for "change of election with respect
to the standard deduction where taxpayer and his spouse made
separate returns, see section 144(b)".
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1307(d)(2)(F)(ii),
1605(b)(5)(A), 1906(b)(13)(A), struck out "or his delegate" after
"Secretary", and substituted "chapter 41, 42, 43, or 44" for
"chapter 42 or 43".
Subsec. (b)(1). Pub. L. 94-455, Secs. 1307(d)(2)(G)(i),
1605(b)(5)(B), (C), 1906(b)(13)(A), struck out "or his delegate"
after "Secretary", and substituted "chapter 41, chapter 42, chapter
43, or chapter 44" for "chapter 42, or chapter 43", and "chapter
41, chapter 42, chapter 43, chapter 44, and this chapter" for
"chapter 42, chapter 43, and this chapter".
Subsec. (c)(1). Pub. L. 94-455, Secs. 1204(c)(5), 1206(c)(3),
1307(d)(2)(G)(ii), 1605(b)(5)(D), 1906(b)(13)(A), struck out "or
his delegate" after "Secretary" wherever appearing, substituted "of
chapter 41 tax for the same taxable year, of chapter 43 tax for the
same taxable years, of chapter 44 tax for the same taxable years"
for "of chapter 43 tax for the same taxable years", and "(relating
to mathematical or clerical errors), in section 6851 (relating to
termination assessments)" for "(relating to mathematical errors)".
Subsec. (c)(2)(B). Pub. L. 94-455, Sec. 1901(b)(31)(C),
substituted "1033(a)(2)(C) and (D)" for "1033(a)(3)(C) and (D)".
Subsec. (c)(2)(D). Pub. L. 94-455, Sec. 1901(b)(37)(C), struck
out subsec. (c)(2)(D) which set forth a cross reference to section
1335 of this title relating to a deficiency attributable to war
loss recoveries where prior benefit rule is elected.
Subsec. (c)(2)(E). Pub. L. 94-455, Sec. 214(b), added subpar.
(E).
1974 - Subsec. (a). Pub. L. 93-406, Sec. 1016(a)(10)(A), inserted
reference to taxes imposed by chapter 43.
Subsec. (b)(1). Pub. L. 93-406, Sec. 1016(a)(10)(B), (C),
inserted reference to chapter 43 in two places.
Subsec. (c)(1). Pub. L. 93-406, Sec. 1016(a)(10)(D), substituted
"of the same decedent, of chapter 43 tax for the same taxable
years," for "of the same decedent,".
1970 - Subsec. (c)(1). Pub. L. 91-614 substituted "calendar
quarter" for "calendar year".
1969 - Subsec. (a). Pub. L. 91-172, Sec. 101(j)(40), inserted
reference to chapter 42.
Subsec. (b)(1). Pub. L. 91-172, Sec. 101(j)(41), inserted
reference to chapter 42 taxes in heading and text.
Subsec. (c)(1). Pub. L. 91-172, Sec. 101(f)(2), included section
4940 tax and chapter 42 tax (other than under section 4940), among
the classes of taxes with respect to which the Secretary cannot
determine additional deficiencies after the taxpayer has filed a
petition for redetermination of any deficiency about which he has
been notified.
1964 - Subsec. (c)(2)(A). Pub. L. 88-272 substituted "with
respect to the" for "to take".
1958 - Subsec. (a). Pub. L. 85-866, Sec. 89(b), inserted
"certified mail or" before "registered mail".
Subsec. (b)(1). Pub. L. 85-866, Sec. 76, substituted "subtitle A
or chapter 12" for "chapter 1 or 12" and "subtitle A, chapter 12,"
for "such chapter".
Subsec. (b)(2). Pub. L. 85-866, Sec. 89(b), inserted "certified
mail or" before "registered mail".
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to sales and exchanges
after May 6, 1997, with certain exceptions, see section 312(d) of
Pub. L. 105-34, set out as a note under section 121 of this title.
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
Amendment by Pub. L. 100-418 applicable to crude oil removed from
the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.
L. 100-418, set out as a note under section 164 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 104(b)(17) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 151(a) of
Pub. L. 99-514, set out as a note under section 1 of this title.
Section 1562(b) of Pub. L. 99-514 provided that: "The amendment
made by this section [amending this section] shall apply to notices
of deficiency issued on or after January 1, 1986."
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable with respect to gifts made
after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out
as a note under section 2501 of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not
applicable to proceedings under title 11, Bankruptcy, commenced
before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as
a note under section 108 of this title.
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 405(c)(5) of Pub. L. 95-600 applicable to
sales and exchanges of residences after July 26, 1978, in taxable
years ending after such date, see section 405(d) of Pub. L. 95-600,
set out as a note under section 1038 of this title.
Amendment by section 701(t)(3)(C) of Pub. L. 95-600 effective
Oct. 4, 1976, see section 701(t)(5) of Pub. L. 95-600, set out as a
note under section 859 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 214(b) of Pub. L. 94-455 applicable to
taxable years beginning after Dec. 31, 1969, except that such
amendments shall not apply to any taxable year ending before Oct.
4, 1976 with respect to which the period for assessing a deficiency
has expired before Oct. 4, 1976, see section 214(c) of Pub. L.
94-455, set out as a note under section 183 of this title.
Amendment by section 1204(c)(5) of Pub. L. 94-455 applicable with
respect to action taken under section 6851, 6861, or 6862 of this
title where the notice and demand takes place after Feb. 28, 1977,
see section 1204(d) of Pub. L. 94-455, as amended, set out as a
note under section 6851 of this title.
Amendment by section 1206(c)(3) of Pub. L. 94-455 applicable to
returns filed after Dec. 31, 1976, see section 1206(d) of Pub. L.
94-455, set out as a note under section 6213 of this title.
Amendment by section 1307(d)(2)(F)(ii), (G) of Pub. L. 94-455
effective on and after Oct. 4, 1976, see section 1307(e)(6) of Pub.
L. 94-455, set out as a note under section 501 of this title.
For effective date of amendment by section 1605(b)(5) of Pub. L.
94-455, see section 1608(d) of Pub. L. 94-455, set out as a note
under section 856 of this title.
Amendment by section 1901(b)(31)(C), (37)(C) of Pub. L. 94-455
applicable to taxable years beginning after Dec. 31, 1976, see
section 1901(d) of Pub. L. 94-455, set out as a note under section
2 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-614 applicable with respect to gifts made
after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out
as a note under section 2501 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
under section 4940 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272, except for purposes of section 21 of
this title, effective with respect to taxable years beginning after
Dec. 31, 1963, see section 131 of Pub. L. 88-272, set out as a note
under section 1 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by section 76 of Pub. L. 85-866 effective Aug. 17,
1954, see section 1(c)(2) of Pub. L. 85-866, set out as a note
under section 165 of this title.
Amendment by section 89(b) of Pub. L. 85-866 applicable only if
mailing occurs after Sept. 2, 1958, see section 89(d) of Pub. L.
85-866, set out as a note under section 7502 of this title.
NOTICE OF DEFICIENCY TO SPECIFY DEADLINES FOR FILING TAX COURT
PETITION
Pub. L. 105-206, title III, Sec. 3463(a), July 22, 1998, 112
Stat. 767, provided that: "The Secretary of the Treasury or the
Secretary's delegate shall include on each notice of deficiency
under section 6212 of the Internal Revenue Code of 1986 the date
determined by such Secretary (or delegate) as the last day on which
the taxpayer may file a petition with the Tax Court."
[Section 3463(a) of Pub. L. 105-206, set out above, applicable to
notices mailed after Dec. 31, 1998, see section 3463(c) of Pub. L.
105-206, set out as an Effective Date of 1998 Amendment note under
section 6213 of this title.]
EXPLANATIONS OF APPEALS AND COLLECTION PROCESS
Pub. L. 105-206, title III, Sec. 3504, July 22, 1998, 112 Stat.
771, provided that: "The Secretary of the Treasury or the
Secretary's delegate shall, as soon as practicable, but not later
than 180 days after the date of the enactment of this Act [July 22,
1998], include with any first letter of proposed deficiency which
allows the taxpayer an opportunity for administrative review in the
Internal Revenue Service Office of Appeals an explanation of the
entire process from examination through collection with respect to
such proposed deficiency, including the assistance available to the
taxpayer from the National Taxpayer Advocate at various points in
the process."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1033, 1311, 2513, 4941,
4942, 4943, 4945, 4951, 4952, 4955, 4958, 4963, 4975, 6013, 6040,
6155, 6213, 6234, 6404, 6503, 6512, 6621, 6672, 6851, 6861, 6901,
7421, 7422, 7463, 7522 of this title; title 29 section 1342.
-End-
-CITE-
26 USC Sec. 6213 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate,
Gift, and Certain Excise Taxes
-HEAD-
Sec. 6213. Restrictions applicable to deficiencies; petition to Tax
Court
-STATUTE-
(a) Time for filing petition and restriction on assessment
Within 90 days, or 150 days if the notice is addressed to a
person outside the United States, after the notice of deficiency
authorized in section 6212 is mailed (not counting Saturday,
Sunday, or a legal holiday in the District of Columbia as the last
day), the taxpayer may file a petition with the Tax Court for a
redetermination of the deficiency. Except as otherwise provided in
section 6851, 6852, or 6861 no assessment of a deficiency in
respect of any tax imposed by subtitle A, or B, chapter 41, 42, 43,
or 44 and no levy or proceeding in court for its collection shall
be made, begun, or prosecuted until such notice has been mailed to
the taxpayer, nor until the expiration of such 90-day or 150-day
period, as the case may be, nor, if a petition has been filed with
the Tax Court, until the decision of the Tax Court has become
final. Notwithstanding the provisions of section 7421(a), the
making of such assessment or the beginning of such proceeding or
levy during the time such prohibition is in force may be enjoined
by a proceeding in the proper court, including the Tax Court, and a
refund may be ordered by such court of any amount collected within
the period during which the Secretary is prohibited from collecting
by levy or through a proceeding in court under the provisions of
this subsection. The Tax Court shall have no jurisdiction to enjoin
any action or proceeding or order any refund under this subsection
unless a timely petition for a redetermination of the deficiency
has been filed and then only in respect of the deficiency that is
the subject of such petition. Any petition filed with the Tax Court
on or before the last date specified for filing such petition by
the Secretary in the notice of deficiency shall be treated as
timely filed.
(b) Exceptions to restrictions on assessment
(1) Assessments arising out of mathematical or clerical errors
If the taxpayer is notified that, on account of a mathematical
or clerical error appearing on the return, an amount of tax in
excess of that shown on the return is due, and that an assessment
of the tax has been or will be made on the basis of what would
have been the correct amount of tax but for the mathematical or
clerical error, such notice shall not be considered as a notice
of deficiency for the purposes of subsection (a) (prohibiting
assessment and collection until notice of the deficiency has been
mailed), or of section 6212(c)(1) (restricting further deficiency
letters), or of section 6512(a) (prohibiting credits or refunds
after petition to the Tax Court), and the taxpayer shall have no
right to file a petition with the Tax Court based on such notice,
nor shall such assessment or collection be prohibited by the
provisions of subsection (a) of this section. Each notice under
this paragraph shall set forth the error alleged and an
explanation thereof.
(2) Abatement of assessment of mathematical or clerical errors
(A) Request for abatement
Notwithstanding section 6404(b), a taxpayer may file with the
Secretary within 60 days after notice is sent under paragraph
(1) a request for an abatement of any assessment specified in
such notice, and upon receipt of such request, the Secretary
shall abate the assessment. Any reassessment of the tax with
respect to which an abatement is made under this subparagraph
shall be subject to the deficiency procedures prescribed by
this subchapter.
(B) Stay of collection
In the case of any assessment referred to in paragraph (1),
notwithstanding paragraph (1), no levy or proceeding in court
for the collection of such assessment shall be made, begun, or
prosecuted during the period in which such assessment may be
abated under this paragraph.
(3) Assessments arising out of tentative carryback or refund
adjustments
If the Secretary determines that the amount applied, credited,
or refunded under section 6411 is in excess of the overassessment
attributable to the carryback or the amount described in section
1341(b)(1) with respect to which such amount was applied,
credited, or refunded, he may assess without regard to the
provisions of paragraph (2) the amount of the excess as a
deficiency as if it were due to a mathematical or clerical error
appearing on the return.
(4) Assessment of amount paid
Any amount paid as a tax or in respect of a tax may be assessed
upon the receipt of such payment notwithstanding the provisions
of subsection (a). In any case where such amount is paid after
the mailing of a notice of deficiency under section 6212, such
payment shall not deprive the Tax Court of jurisdiction over such
deficiency determined under section 6211 without regard to such
assessment.
(c) Failure to file petition
If the taxpayer does not file a petition with the Tax Court
within the time prescribed in subsection (a), the deficiency,
notice of which has been mailed to the taxpayer, shall be assessed,
and shall be paid upon notice and demand from the Secretary.
(d) Waiver of restrictions
The taxpayer shall at any time (whether or not a notice of
deficiency has been issued) have the right, by a signed notice in
writing filed with the Secretary, to waive the restrictions
provided in subsection (a) on the assessment and collection of the
whole or any part of the deficiency.
(e) Suspension of filing period for certain excise taxes
The running of the time prescribed by subsection (a) for filing a
petition in the Tax Court with respect to the taxes imposed by
section 4941 (relating to taxes on self-dealing), 4942 (relating to
taxes on failure to distribute income), 4943 (relating to taxes on
excess business holdings), 4944 (relating to investments which
jeopardize charitable purpose), 4945 (relating to taxes on taxable
expenditures), 4951 (relating to taxes on self-dealing), or 4952
(relating to taxes on taxable expenditures), 4955 (relating to
taxes on political expenditures), 4958 (relating to private excess
benefit), 4971 (relating to excise taxes on failure to meet minimum
funding standard), 4975 (relating to excise taxes on prohibited
transactions) shall be suspended for any period during which the
Secretary has extended the time allowed for making correction under
section 4963(e).
(f) Coordination with title 11
(1) Suspension of running of period for filing petition in title
11 cases
In any case under title 11 of the United States Code, the
running of the time prescribed by subsection (a) for filing a
petition in the Tax Court with respect to any deficiency shall be
suspended for the period during which the debtor is prohibited by
reason of such case from filing a petition in the Tax Court with
respect to such deficiency, and for 60 days thereafter.
(2) Certain action not taken into account
For purposes of the second and third sentences of subsection
(a), the filing of a proof of claim or request for payment (or
the taking of any other action) in a case under title 11 of the
United States Code shall not be treated as action prohibited by
such second sentence.
(g) Definitions
For purposes of this section -
(1) Return
The term "return" includes any return, statement, schedule, or
list, and any amendment or supplement thereto, filed with respect
to any tax imposed by subtitle A or B, or chapter 41, 42, 43, or
44.
(2) Mathematical or clerical error
The term "mathematical or clerical error" means -
(A) an error in addition, subtraction, multiplication, or
division shown on any return,
(B) an incorrect use of any table provided by the Internal
Revenue Service with respect to any return if such incorrect
use is apparent from the existence of other information on the
return,
(C) an entry on a return of an item which is inconsistent
with another entry of the same or another item on such return,
(D) an omission of information which is required to be
supplied on the return to substantiate an entry on the return,
(E) an entry on a return of a deduction or credit in an
amount which exceeds a statutory limit imposed by subtitle A or
B, or chapter 41, 42, 43, or 44, if such limit is expressed -
(i) as a specified monetary amount, or
(ii) as a percentage, ratio, or fraction,
and if the items entering into the application of such limit
appear on such return,
(F) an omission of a correct taxpayer identification number
required under section 32 (relating to the earned income
credit) to be included on a return,
(G) an entry on a return claiming the credit under section 32
with respect to net earnings from self-employment described in
section 32(c)(2)(A) to the extent the tax imposed by section
1401 (relating to self-employment tax) on such net earnings has
not been paid,
(H) an omission of a correct TIN required under section 21
(relating to expenses for household and dependent care services
necessary for gainful employment) or section 151 (relating to
allowance of deductions for personal exemptions),
(I) an omission of a correct TIN required under section 24(e)
(relating to child tax credit) to be included on a return,
(J) an omission of a correct TIN required under section
25A(g)(1) (relating to higher education tuition and related
expenses) to be included on a return,
(K) an omission of information required by section 32(k)(2)
(relating to taxpayers making improper prior claims of earned
income credit),
(L) the inclusion on a return of a TIN required to be
included on the return under section 21, 24, or 32 if -
(i) such TIN is of an individual whose age affects the
amount of the credit under such section, and
(ii) the computation of the credit on the return reflects
the treatment of such individual as being of an age different
from the individual's age based on such TIN, and
(M) the entry on the return claiming the credit under section
32 with respect to a child if, according to the Federal Case
Registry of Child Support Orders established under section
453(h) of the Social Security Act, the taxpayer is a
noncustodial parent of such child.
A taxpayer shall be treated as having omitted a correct TIN for
purposes of the preceding sentence if information provided by the
taxpayer on the return with respect to the individual whose TIN
was provided differs from the information the Secretary obtains
from the person issuing the TIN.
(h) Cross references
(1) For assessment as if a mathematical error on the return,
in the case of erroneous claims for income tax prepayment
credits, see section 6201(a)(3).
(2) For assessments without regard to restrictions imposed by
this section in the case of -
(A) Recovery of foreign income taxes, see section 905(c).
(B) Recovery of foreign estate tax, see section 2016.
(3) For provisions relating to application of this subchapter
in the case of certain partnership items, etc., see section
6230(a).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 771; Pub. L. 89-44, title VIII,
Sec. 809(d)(4)(B), June 21, 1965, 79 Stat. 168; Pub. L. 91-172,
title I, Sec. 101(f)(3), (j)(42), Dec. 30, 1969, 83 Stat. 524, 530;
Pub. L. 93-406, title II, Sec. 1016(a)(11), Sept. 2, 1974, 88 Stat.
930; Pub. L. 94-455, title XII, Secs. 1204(c)(6), 1206(a)-(c)(1),
title XIII, Sec. 1307(d)(2)(F)(iii), title XVI, Sec. 1605(b)(6),
title XIX, Secs. 1906(a)(15), (b)(13)(A), Oct. 4, 1976, 90 Stat.
1698, 1703, 1704, 1728, 1755, 1825, 1834; Pub. L. 95-227, Sec.
4(d)(1), (2), Feb. 10, 1978, 92 Stat. 23; Pub. L. 95-600, title V,
Sec. 504(b)(2), Nov. 6, 1978, 92 Stat. 2881; Pub. L. 96-223, title
I, Sec. 101(f)(1)(D), (E), Apr. 2, 1980, 94 Stat. 252; Pub. L.
96-589, Sec. 6(b)(1), Dec. 24, 1980, 94 Stat. 3407; Pub. L. 96-596,
Sec. 2(a)(4)(C), Dec. 24, 1980, 94 Stat. 3472; Pub. L. 97-248,
title IV, Sec. 402(c)(2), Sept. 3, 1982, 96 Stat. 667; Pub. L.
98-369, title III, Sec. 305(b)(4), title IV, Sec. 474(r)(34), July
18, 1984, 98 Stat. 784, 845; Pub. L. 99-514, title XVIII, Sec.
1875(d)(2)(B)(i), Oct. 22, 1986, 100 Stat. 2896; Pub. L. 100-203,
title X, Secs. 10712(c)(1), 10713(b)(2)(D), Dec. 22, 1987, 101
Stat. 1330-467, 1330-470; Pub. L. 100-418, title I, Sec.
1941(b)(2)(B)(iv), (v), Aug. 23, 1988, 102 Stat. 1323; Pub. L.
100-647, title I, Sec. 1015(r)(3), title VI, Sec. 6243(a), Nov. 10,
1988, 102 Stat. 3573, 3749; Pub. L. 101-239, title VII, Sec.
7811(k)(1), Dec. 19, 1989, 103 Stat. 2412; Pub. L. 104-168, title
XIII, Sec. 1311(c)(3), July 30, 1996, 110 Stat. 1478; Pub. L.
104-188, title I, Sec. 1615(c), Aug. 20, 1996, 110 Stat. 1853; Pub.
L. 104-193, title IV, Sec. 451(c), Aug. 22, 1996, 110 Stat. 2277;
Pub. L. 105-34, title I, Sec. 101(d)(2), title II, Sec. 201(b),
title X, Sec. 1085(a)(3), Aug. 5, 1997, 111 Stat. 799, 803, 956;
Pub. L. 105-206, title III, Secs. 3463(b), 3464(a), title VI, Sec.
6010(p)(3), July 22, 1998, 112 Stat. 767, 817; Pub. L. 105-277,
div. J, title III, Sec. 3003(a), (b), Oct. 21, 1998, 112 Stat.
2681-905; Pub. L. 107-16, title III, Sec. 303(g), June 7, 2001, 115
Stat. 56.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-REFTEXT-
REFERENCES IN TEXT
Section 453(h) of the Social Security Act, referred to in subsec.
(g)(2)(M), is classified to section 653(h) of Title 42, The Public
Health and Welfare.
-MISC1-
AMENDMENTS
2001 - Subsec. (g)(2)(M). Pub. L. 107-16, Secs. 303(g), 901,
temporarily added subpar. (M). See Effective and Termination Dates
of 2001 Amendment note below.
1998 - Subsec. (a). Pub. L. 105-206, Sec. 3464(a), substituted ",
including the Tax Court, and a refund may be ordered by such court
of any amount collected within the period during which the
Secretary is prohibited from collecting by levy or through a
proceeding in court under the provisions of this subsection." for
", including the Tax Court." and "to enjoin any action or
proceeding or order any refund" for "to enjoin any action or
proceeding".
Pub. L. 105-206, Sec. 3463(b), inserted at end "Any petition
filed with the Tax Court on or before the last date specified for
filing such petition by the Secretary in the notice of deficiency
shall be treated as timely filed."
Subsec. (g)(2). Pub. L. 105-277, Sec. 3003(a), inserted
concluding provisions.
Subsec. (g)(2)(K). Pub. L. 105-206, Sec. 6010(p)(3), amended Pub.
L. 105-34, Sec. 1085(a)(3). See 1997 Amendment note below.
Subsec. (g)(2)(L). Pub. L. 105-277, Sec. 3003(b), added subpar.
(L).
1997 - Subsec. (g)(2)(I). Pub. L. 105-34, Sec. 101(d)(2), added
subpar. (I).
Subsec. (g)(2)(J). Pub. L. 105-34, Sec. 201(b), added subpar.
(J).
Subsec. (g)(2)(K). Pub. L. 105-34, Sec. 1085(a)(3), as amended by
Pub. L. 105-206, Sec. 6010(p)(3), added subpar. (K).
1996 - Subsec. (e). Pub. L. 104-168 inserted "4958 (relating to
private excess benefit)," before "4971".
Subsec. (g)(2)(F), (G). Pub. L. 104-193 added subpars. (F) and
(G).
Subsec. (g)(2)(H). Pub. L. 104-188 added subpar. (H).
1989 - Subsec. (h)(3), (4). Pub. L. 101-239 made technical
correction to directory language of Pub. L. 100-647, Sec.
1015(r)(3), see 1988 Amendment note below.
1988 - Subsec. (a). Pub. L. 100-647, Sec. 6243(a), substituted
for period at end ", including the Tax Court. The Tax Court shall
have no jurisdiction to enjoin any action or proceeding under this
subsection unless a timely petition for a redetermination of the
deficiency has been filed and then only in respect of the
deficiency that is the subject of such petition."
Pub. L. 100-418, Sec. 1941(b)(2)(B)(iv), substituted "or 44" for
"44, or 45".
Subsec. (g)(1), (2)(E). Pub. L. 100-418, Sec. 1941(b)(2)(B)(v),
substituted "or 44" for "44, or 45".
Subsec. (h)(3), (4). Pub. L. 100-647, Sec. 1015(r)(3), as amended
by Pub. L. 101-239, redesignated par. (4) as (3) and struck out
former par. (3) which read as follows: "For assessment as if a
mathematical error on the return, in the case of erroneous claims
for credits under section 32 or 34, see section 6201(a)(4)."
1987 - Subsec. (a). Pub. L. 100-203, Sec. 10713(b)(2)(D),
inserted reference to section 6852.
Subsec. (e). Pub. L. 100-203, Sec. 10712(c)(1), inserted "4955
(relating to taxes on political expenditures),".
1986 - Subsec. (h)(4). Pub. L. 99-514 amended par. (4) generally.
Prior to amendment, par. (4) read as follows: "For provision that
this subchapter shall not apply in the case of computational
adjustments attributable to partnership items, see section
6230(a)."
1984 - Subsec. (e). Pub. L. 98-369, Sec. 305(b)(4), substituted
"section 4963(e)" for "section 4962(e)".
Subsec. (h)(3). Pub. L. 98-369, Sec. 474(r)(34), substituted
"section 32 or 34" for "section 39".
1982 - Subsec. (h)(4). Pub. L. 97-248 added par. (4).
1980 - Subsec. (a). Pub. L. 96-223, Sec. 101(f)(1)(D), inserted
reference to chapter 45.
Subsec. (e). Pub. L. 96-596 substituted "section 4962(e)" for
"section 4941(e)(4), 4942(j)(2), 4943(d)(3), 4944(e)(3),
4945(i)(2), 4951(e)(4), 4952(e)(2), 4971(c)(3), or 4975(f)(6)".
Subsec. (f). Pub. L. 96-589 added subsec. (f). Former subsec. (f)
redesignated (g).
Subsec. (f)(1), (2)(E). Pub. L. 96-223, Sec. 101(f)(1)(E),
inserted reference to chapter 45.
Subsecs. (g), (h). Pub. L. 96-589 redesignated former subsecs.
(f) and (g) as (g) and (h), respectively.
1978 - Subsec. (b)(3). Pub. L. 95-600 inserted "or refund" after
"carryback" in heading, and "or the amount described in section
1341(b)(1)" after "carryback" in text.
Subsec. (e). Pub. L. 95-227, Sec. 4(d)(1), inserted provisions
relating to sections 4951 and 4952 of this title, and substituted
"4975(f)(6)" for "4975(f)(4)".
Subsec. (f). Pub. L. 95-227, Sec. 4(d)(2), inserted references to
chapters 41 and 44.
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1204(c)(6),
1307(d)(2)(F)(iii), 1605(b)(6), 1906(a)(15), inserted "section 6851
or" before "section 6861" and references to chapter 41 and chapter
44 and substituted "United States" for "States of the Union and the
District of Columbia".
Subsec. (b)(1). Pub. L. 94-455, Sec. 1206(a)(2), substituted in
heading "Assessments arising out of mathematical or clerical
errors" for "Mathematical errors" and in text inserted "or
clerical" after "mathematical" in two places and inserted provision
that each notice under this paragraph shall set forth the error
alleged and an explanation thereof.
Subsec. (b)(2). Pub. L. 94-455, Sec. 1206(a)(2), added par. (2).
Former par. (2) redesignated (3).
Subsec. (b)(3). Pub. L. 94-455, Secs. 1206(a)(1), (c)(1),
1906(b)(13)(A), redesignated former par. (2) as (3), and as so
redesignated, struck out "or his delegate" after "Secretary" and
inserted "without regard to the provisions of paragraph (2)" after
"he may assess" and "or clerical" after "mathematical". Former par.
(3) redesignated (4).
Subsec. (b)(4). Pub. L. 94-455, Sec. 1206(a)(1), redesignated
former par. (3) as (4).
Subsecs. (c) to (e). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsecs. (f), (g). Pub. L. 94-455, Sec. 1206(b), added subsec.
(f) and redesignated former subsec. (f) as (g).
1974 - Subsec. (a). Pub. L. 93-406, Sec. 1016(a)(11)(A), inserted
reference to tax imposed by chapter 43.
Subsec. (e). Pub. L. 93-406, Sec. 1016(a)(11)(B)-(D), substituted
"excise taxes" for "chapter 42 taxes" in heading, and in text
substituted "4945 (relating to taxes on taxable expenditures), 4971
(relating to excise taxes on failure to meet minimum funding
standard), 4975 (relating to excise tax on prohibited
transactions)" for "or 4945 (relating to taxes on taxable
expenditures)" and ", 4945(i)(2), 4971(c)(3), or 4975(f)(4)" for
"or 4945(h)(2)".
1969 - Subsec. (a). Pub. L. 91-172, Sec. 101(j)(42), inserted
reference to chapter 42.
Subsecs. (e), (f). Pub. L. 91-172, Sec. 101(f)(3), added subsec.
(e) and redesignated former subsec. (e) as (f).
1965 - Subsec. (e)(3). Pub. L. 89-44 added par. (3).
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 effective Jan. 1, 2004, see section
303(i) of Pub. L. 107-16, set out as a note under section 32 of
this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1998 AMENDMENTS
Pub. L. 105-277, div. J, title III, Sec. 3003(c), Oct. 21, 1998,
112 Stat. 2681-905, provided that: "The amendments made by this
section [amending this section] shall apply to taxable years ending
after the date of the enactment of this Act [Oct. 21, 1998]."
Pub. L. 105-206, title III, Sec. 3463(c), July 22, 1998, 112
Stat. 767, provided that: "Subsection (a) and the amendment made by
subsection (b) [amending this section and enacting provisions set
out as a note under section 6212 of this title] shall apply to
notices mailed after December 31, 1998."
Pub. L. 105-206, title III, Sec. 3464(d), July 22, 1998, 112
Stat. 767, provided that: "The amendments made by this section
[amending this section and section 6512 of this title] shall take
effect on the date of the enactment of this Act [July 22, 1998]."
Amendment by section 6010(p)(3) of Pub. L. 105-206 effective,
except as otherwise provided, as if included in the provisions of
the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such
amendment relates, see section 6024 of Pub. L. 105-206, set out as
a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 101(d)(2) of Pub. L. 105-34 applicable to
taxable years beginning after Dec. 31, 1997, see section 101(e) of
Pub. L. 105-34, set out as an Effective Date note under section 24
of this title.
Amendment by section 201(b) of Pub. L. 105-34 applicable to
expenses paid after Dec. 31, 1997 (in taxable years ending after
such date), for education furnished in academic periods beginning
after such date, see section 201(f) of Pub. L. 105-34, set out as
an Effective Date note under section 25A of this title.
Amendment by section 1085(a)(3) of Pub. L. 105-34 applicable to
taxable years beginning after Dec. 31, 1996, see section 1085(e)(1)
of Pub. L. 105-34, set out as a note under section 32 of this
title.
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by Pub. L. 104-193 applicable with respect to returns
the due date for which (without regard to extensions) is more than
30 days after Aug. 22, 1996, see section 451(d) of Pub. L. 104-193,
set out as a note under section 32 of this title.
Amendment by Pub. L. 104-188 applicable with respect to returns
the due date for which, without regard to extensions, is on or
after the 30th day after Aug. 20, 1996, with special rule for 1995
and 1996, see section 1615(d) of Pub. L. 104-188, set out as a note
under section 21 of this title.
Amendment by Pub. L. 104-168 applicable to excess benefit
transactions occurring on or after Sept. 14, 1995, and not
applicable to any benefit arising from a transaction pursuant to
any written contract which was binding on Sept. 13, 1995, and at
all times thereafter before such transaction occurred, see section
1311(d)(1), (2) of Pub. L. 104-168, set out as a note under section
4955 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 effective, except as otherwise
provided, as if included in the provision of the Technical and
Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such
amendment relates, see section 7817 of Pub. L. 101-239, set out as
a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by section 1015(r)(3) of Pub. L. 100-647 applicable to
notices of deficiencies mailed after Nov. 10, 1988, see section
1015(r)(4) of Pub. L. 100-647, set out as a note under section 6201
of this title.
Section 6243(c) of Pub. L. 100-647 provided that: "The amendments
made by this section [amending this section and section 7482 of
this title] shall apply to orders entered after the date of the
enactment of this Act [Nov. 10, 1988]."
Amendment by Pub. L. 100-418 applicable to crude oil removed from
premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L.
100-418, set out as a note under section 164 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by section 10712(c)(1) of Pub. L. 100-203 applicable to
taxable years beginning after Dec. 22, 1987, see section 10712(d)
of Pub. L. 100-203, set out as an Effective Date note under section
4955 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 effective as if included in the Tax
Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, see
section 1875(d)(2)(C) of Pub. L. 99-514, set out as a note under
section 6230 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 305(b)(4) of Pub. L. 98-369 applicable to
taxable events occurring after Dec. 31, 1984, see section 305(c) of
Pub. L. 98-369, set out as an Effective Date note under section
4962 of this title.
Amendment by section 474(r)(34) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, and to carrybacks from
such years, see section 475(a) of Pub. L. 98-369, set out as a note
under section 21 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 applicable to partnership taxable
years beginning after Sept. 3, 1982, with provision for the
applicability of the amendment to any partnership taxable year
ending after Sept. 3, 1982, if the partnership, each partner, and
each indirect partner requests such application and the Secretary
of the Treasury or his delegate consents to such application, see
section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective
Date note under section 6221 of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
For effective date of amendment by Pub. L. 96-596 with respect to
any first tier tax and to any second tier tax, see section 2(d) of
Pub. L. 96-596, set out as an Effective Date note under section
4961 of this title.
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not
applicable to proceedings under Title 11, Bankruptcy, commenced
before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as
a note under section 108 of this title.
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
EFFECTIVE DATE OF 1978 AMENDMENTS
Amendment by Pub. L. 95-600 applicable to tentative refund claims
filed on and after Nov. 6, 1978, see section 504(c) of Pub. L.
95-600, set out as a note under section 6411 of this title.
Amendment by Pub. L. 95-227 applicable with respect to
contributions, acts, and expenditures made after Dec. 31, 1977, in
and for taxable years beginning after such date, see section 4(f)
of Pub. L. 95-227, set out as an Effective Date note under section
192 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1204(c)(6) of Pub. L. 94-455 applicable with
respect to action taken under section 6851, 6861, or 6862 of this
title where the notice and demand takes place after Feb. 28, 1977,
see section 1204(d) of Pub. L. 94-455, as amended, set out as a
note under section 6851 of this title.
Section 1206(d) of Pub. L. 94-455, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The
amendments made by this section [amending this section and sections
6201 and 6212 of this title] shall apply with respect to returns
(within the meaning of section 6213(f)(1) of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954]) filed after December 31,
1976."
Amendment by section 1307(d)(2)(F)(iii) of Pub. L. 94-455
effective on and after Oct. 4, 1976, see section 1307(e)(6) of Pub.
L. 94-455, set out as a note under section 501 of this title.
For effective date of amendment by section 1605(b)(6) of Pub. L.
94-455, see section 1608(d) of Pub. L. 94-455, set out as a note
under section 856 of this title.
Amendment by section 1906(a)(15), (b)(13)(A) of Pub. L. 94-455
effective on first day of first month which begins more than 90
days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455,
set out as a note under section 6013 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
under section 4940 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable to taxable years beginning
on or after July 1, 1965, see section 809(f) of Pub. L. 89-44, set
out as a note under section 6420 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 303, 2011, 2014, 2058,
4942, 4961, 4963, 6013, 6034A, 6037, 6155, 6201, 6204, 6212, 6230,
6234, 6241, 6246, 6255, 6404, 6428, 6429, 6501, 6512, 6601, 6651,
6861, 6863, 6871, 7404, 7421, 7429, 7436, 7482 of this title.
-End-
-CITE-
26 USC Sec. 6214 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate,
Gift, and Certain Excise Taxes
-HEAD-
Sec. 6214. Determinations by Tax Court
-STATUTE-
(a) Jurisdiction as to increase of deficiency, additional amounts,
or additions to the tax
Except as provided by section 7463, the Tax Court shall have
jurisdiction to redetermine the correct amount of the deficiency
even if the amount so redetermined is greater than the amount of
the deficiency, notice of which has been mailed to the taxpayer,
and to determine whether any additional amount, or any addition to
the tax should be assessed, if claim therefor is asserted by the
Secretary at or before the hearing or a rehearing.
(b) Jurisdiction over other years and quarters
The Tax Court in redetermining a deficiency of income tax for any
taxable year or of gift tax for any calendar year or calendar
quarter shall consider such facts with relation to the taxes for
other years or calendar quarters as may be necessary correctly to
redetermine the amount of such deficiency, but in so doing shall
have no jurisdiction to determine whether or not the tax for any
other year or calendar quarter has been overpaid or underpaid.
(c) Taxes imposed by section 507 or chapter 41, 42, 43, or 44
The Tax Court, in redetermining a deficiency of any tax imposed
by section 507 or chapter 41, 42, 43, or 44 for any period, act, or
failure to act, shall consider such facts with relation to the
taxes under chapter 41, 42, 43, or 44 for other periods, acts, or
failures to act as may be necessary correctly to redetermine the
amount of such deficiency, but in so doing shall have no
jurisdiction to determine whether or not the taxes under chapter
41, 42, 43, or 44 for any other period, act, or failure to act have
been overpaid or underpaid. The Tax Court, in redetermining a
deficiency of any second tier tax (as defined in section 4963(b)),
shall make a determination with respect to whether the taxable
event has been corrected.
(d) Final decisions of Tax Court
For purposes of this chapter, chapter 41, 42, 43, or 44, and
subtitles A or B the date on which a decision of the Tax Court
becomes final shall be determined according to the provisions of
section 7481.
(e) Cross reference
For provision giving Tax Court jurisdiction to order a refund
of an overpayment and to award sanctions, see section
6512(b)(2).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 773; Pub. L. 91-172, title I,
Sec. 101(j)(43), (44), title IX, Sec. 960(a), Dec. 30, 1969, 83
Stat. 530, 531, 734; Pub. L. 91-614, title I, Sec. 102(d)(6), Dec.
31, 1970, 84 Stat. 1842; Pub. L. 93-406, title II, Sec.
1016(a)(12), Sept. 2, 1974, 88 Stat. 930; Pub. L. 94-455, title
XIII, Sec. 1307(d)(2)(F)(iv), (H), title XVI, Sec. 1605(b)(7),
title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1728, 1755,
1834; Pub. L. 96-223, title I, Sec. 101(f)(1)(F), (G), Apr. 2,
1980, 94 Stat. 252; Pub. L. 96-596, Sec. 2(b), Dec. 24, 1980, 94
Stat. 3472; Pub. L. 98-369, div. A, title I, Sec. 144(b), July 18,
1984, 98 Stat. 683; Pub. L. 99-514, title XV, Secs. 1511(c)(8),
1554(a), title XVIII, Sec. 1833, Oct. 22, 1986, 100 Stat. 2745,
2754, 2852; Pub. L. 100-418, title I, Sec. 1941(b)(2)(B)(vi),
(vii), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 100-647, title VI,
Sec. 6244(b)(1), Nov. 10, 1988, 102 Stat. 3750; Pub. L. 104-188,
title I, Sec. 1704(t)(16), Aug. 20, 1996, 110 Stat. 1888.)
-MISC1-
AMENDMENTS
1996 - Subsec. (e). Pub. L. 104-188 amended subsec. (e)
generally, striking par. (2) designation and par. (1) which
provided cross reference to section 6621(c)(4) of this title for
provision giving Tax Court jurisdiction to determine whether any
portion of deficiency is a substantial underpayment attributable to
tax motivated transactions.
1988 - Subsec. (c). Pub. L. 100-418, Sec. 1941(b)(2)(B)(vi),
substituted "or 44" for "44, or 45" in heading and wherever
appearing in text.
Subsec. (d). Pub. L. 100-418, Sec. 1941(b)(2)(B)(vii),
substituted "or 44" for "44, or 45".
Subsec. (e). Pub. L. 100-647 substituted "references" for
"reference" in heading, designated existing provisions as par. (1),
and added par. (2).
1986 - Subsec. (a). Pub. L. 99-514, Sec. 1554(a), substituted
"any addition to the tax" for "addition to the tax".
Subsec. (c). Pub. L. 99-514, Sec. 1833, substituted "section
4963(b)" for "section 4962(b)".
Subsec. (e). Pub. L. 99-514, Sec. 1511(c)(8), substituted
"section 6621(c)(4)" for "section 6621(d)(4)".
1984 - Subsec. (e). Pub. L. 98-369 added subsec. (e).
1980 - Subsec. (c). Pub. L. 96-596 inserted provision directing
the Tax Court, in redetermining a deficiency of any second tier
tax, to make a determination with respect to whether the taxable
event has been corrected.
Pub. L. 96-223, Sec. 101(f)(1)(F), inserted reference to chapter
45.
Subsec. (d). Pub. L. 96-223, Sec. 101(f)(1)(G), inserted
reference to chapter 45.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (c). Pub. L. 94-455, Secs. 1307(d)(2)(F)(iv), (H),
1605(b)(7)(A), (B), substituted in heading and in text "41, 42, 43,
or 44" for "42 or 43".
Subsec. (d). Pub. L. 94-455, Secs. 1307(d)(2)(F)(iv),
1605(b)(7)(C), substituted "41, 42, 43, or 44" for "42 or 43".
1974 - Subsec. (c). Pub. L. 93-406, Sec. 1016(a)(12)(A), (B),
inserted reference to chapter 43 in heading and in text.
Subsec. (d). Pub. L. 93-406, Sec. 1016(a)(12)(C), inserted
reference to chapter 43.
1970 - Subsec. (b). Pub. L. 91-614 inserted reference to calendar
quarters in heading and in text in regard to gift tax deficiencies.
1969 - Subsec. (a). Pub. L. 91-172, Sec. 960(a), inserted
reference to exception provided for in section 7463 of this title.
Subsecs. (c), (d). Pub. L. 91-172, Sec. 101(j)(43), (44), added
subsec. (c), redesignated former subsec. (c) as (d), and, in
subsec. (d) as so redesignated, inserted reference to chapter 42.
EFFECTIVE DATE OF 1988 AMENDMENTS
Section 6244(c) of Pub. L. 100-647 provided that: "The amendments
made by this section [amending this section and section 6512 of
this title] shall apply to overpayments determined by the Tax Court
which have not yet been refunded by the 90th day after the date of
the enactment of this Act [Nov. 10, 1988]."
Amendment by Pub. L. 100-418 applicable to crude oil removed from
the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.
L. 100-418, set out as a note under section 164 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1511(c)(8) of Pub. L. 99-514 applicable for
purposes of determining interest for periods after Dec. 31, 1986,
see section 1511(d) of Pub. L. 99-514, set out as a note under
section 47 of this title.
Section 1554(b) of Pub. L. 99-514 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to any
action or proceeding in the Tax Court with respect to which a
decision has not become final (as determined under section 7481 of
the Internal Revenue Code of 1954 [now 1986]) before the date of
the enactment of this Act [Oct. 22, 1986]."
Amendment by section 1833 of Pub. L. 99-514 effective, except as
otherwise provided, as if included in the provisions of the Tax
Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment
relates, see section 1881 of Pub. L. 99-514, set out as a note
under section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable with respect to interest
accruing after Dec. 31, 1984, see section 144(c) of Pub. L. 98-369,
set out as a note under section 6621 of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
For effective date of amendment by Pub. L. 96-596 with respect to
any first tier tax and to any second tier tax, see section 2(d) of
Pub. L. 96-596, set out as an Effective Date note under section
4961 of this title.
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1307(d)(2)(F)(iv), (H) of Pub. L. 94-455
effective on and after Oct. 4, 1976, see section 1307(e)(6) of Pub.
L. 94-455, set out as a note under section 501 of this title.
For effective date of amendment by section 1605(b)(7) of Pub. L.
94-455, see section 1608(d) of Pub. L. 94-455, set out as a note
under section 856 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-614 applicable with respect to gifts made
after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out
as a note under section 2501 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 101(j)(43), (44) of Pub. L. 91-172 effective
Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as
an Effective Date note under section 4940 of this title.
Amendment by section 960(a) of Pub. L. 91-172 effective one year
after Dec. 30, 1969, see section 962(e) of Pub. L. 91-172, set out
as an Effective Date note under section 7463 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6212, 6234, 7436, 7463 of
this title.
-End-
-CITE-
26 USC Sec. 6215 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate,
Gift, and Certain Excise Taxes
-HEAD-
Sec. 6215. Assessment of deficiency found by Tax Court
-STATUTE-
(a) General rule
If the taxpayer files a petition with the Tax Court, the entire
amount redetermined as the deficiency by the decision of the Tax
Court which has become final shall be assessed and shall be paid
upon notice and demand from the Secretary. No part of the amount
determined as a deficiency by the Secretary but disallowed as such
by the decision of the Tax Court which has become final shall be
assessed or be collected by levy or by proceeding in court with or
without assessment.
(b) Cross references
(1) For assessment or collection of the amount of the
deficiency determined by the Tax Court pending appellate court
review, see section 7485.
(2) For dismissal of petition by Tax Court as affirmation of
deficiency as determined by the Secretary, see section 7459(d).
(3) For decision of Tax Court that tax is barred by
limitation as its decision that there is no deficiency, see
section 7459(e).
(4) For assessment of damages awarded by Tax Court for
instituting proceedings merely for delay, see section 6673.
(5) For treatment of certain deficiencies as having been
paid, in connection with sale of surplus war-built vessels, see
section 9(b)(8) of the Merchant Ship Sales Act of 1946 (50
U.S.C. App. 1742).
(6) For rules applicable to Tax Court proceedings, see
generally subchapter C of chapter 76.
(7) For extension of time for paying amount determined as
deficiency, see section 6161(b).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 773; Pub. L. 94-455, title XIX,
Sec. 1906(a)(16), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1825, 1834;
Pub. L. 99-514, title XIV, Sec. 1404(c)(2), Oct. 22, 1986, 100
Stat. 2714.)
-MISC1-
AMENDMENTS
1986 - Subsec. (b)(7), (8). Pub. L. 99-514 redesignated par. (8)
as (7) and struck out former par. (7) which read as follows: "For
proration of deficiency to installments, see section 6152(c)."
1976 - Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his
delegate" after "Secretary" wherever appearing.
Subsec. (b)(5). Pub. L. 94-455, Sec. 1906(a)(16), struck out "60
Stat. 48;" before "50 U.S.C. App. 1742".
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning
after Dec. 31, 1986, see section 1404(d) of Pub. L. 99-514, set out
as a note under section 643 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 7436, 7481 of this title.
-End-
-CITE-
26 USC Sec. 6216 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate,
Gift, and Certain Excise Taxes
-HEAD-
Sec. 6216. Cross references
-STATUTE-
(1) For procedures relating to receivership proceedings, see
subchapter B of chapter 70.
(2) For procedures relating to jeopardy assessments, see
subchapter A of chapter 70.
(3) For procedures relating to claims against transferees and
fiduciaries, see chapter 71.
(4) For procedure relating to partnership items, see
subchapter C.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 773; Pub. L. 96-589, Sec.
6(i)(9), Dec. 24, 1980, 94 Stat. 3411; Pub. L. 97-248, title IV,
Sec. 402(c)(3), Sept. 3, 1982, 96 Stat. 667.)
-MISC1-
AMENDMENTS
1982 - Par. (4). Pub. L. 97-248 added par. (4).
1980 - Par. (1). Pub. L. 96-589 struck out reference to
bankruptcy proceedings.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 applicable to partnership taxable
years beginning after Sept. 3, 1982, with provision for the
applicability of the amendment to any partnership taxable year
ending after Sept. 3, 1982, if the partnership, each partner, and
each indirect partner requests such application and the Secretary
of the Treasury or his delegate consents to such application, see
section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective
Date note under section 6221 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not
applicable to proceedings under Title 11, Bankruptcy, commenced
before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as
a note under section 108 of this title.
-End-
-CITE-
26 USC Subchapter C - Tax Treatment of Partnership Items 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
SUBCHAPTER C - TAX TREATMENT OF PARTNERSHIP ITEMS
-MISC1-
Sec.
6221. Tax treatment determined at partnership level.
6222. Partner's return must be consistent with partnership
return or Secretary notified of inconsistency.
6223. Notice to partners of proceedings.
6224. Participation in administrative proceedings; waivers;
agreements.
6225. Assessments made only after partnership level
proceedings are completed.
6226. Judicial review of final partnership administrative
adjustments.
6227. Administrative adjustment requests.
6228. Judicial review where administrative adjustment
request is not allowed in full.
6229. Period of limitations for making assessments.
6230. Additional administrative provisions.
6231. Definitions and special rules.
[6232. Repealed.]
6233. Extension to entities filing partnership returns, etc.
6234. Declaratory judgment relating to treatment of items
other than partnership items with respect to an
oversheltered return.
AMENDMENTS
1997 - Pub. L. 105-34, title XII, Sec. 1231(c), Aug. 5, 1997, 111
Stat. 1023, added item 6234.
1988 - Pub. L. 100-418, title I, Sec. 1941(b)(3)(D), Aug. 23,
1988, 102 Stat. 1324, struck out item 6232 "Extension of subchapter
to windfall profit tax".
1984 - Pub. L. 98-369, div. A, title VII, Sec. 714(p)(2)(E), July
18, 1984, 98 Stat. 965, added item 6233.
1982 - Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 648, added subchapter C heading and items 6221 to 6232.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 702, 6012, 6211, 6216,
6240, 6512 of this title.
-End-
-CITE-
26 USC Sec. 6221 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6221. Tax treatment determined at partnership level
-STATUTE-
Except as otherwise provided in this subchapter, the tax
treatment of any partnership item (and the applicability of any
penalty, addition to tax, or additional amount which relates to an
adjustment to a partnership item) shall be determined at the
partnership level.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 648; amended Pub. L. 105-34, title XII, Sec. 1238(a), Aug. 5,
1997, 111 Stat. 1026.)
-MISC1-
AMENDMENTS
1997 - Pub. L. 105-34 inserted "(and the applicability of any
penalty, addition to tax, or additional amount which relates to an
adjustment to a partnership item)" after "item".
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1238(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and sections 6226 and
6230 of this title] shall apply to partnership taxable years ending
after the date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE
Section 407(a) of Pub. L. 97-248, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) Except as provided in paragraph (2), the amendments made by
sections 402, 403, and 404 [enacting this subchapter and section
1508 of Title 28, Judiciary and Judicial Procedure, amending
sections 702, 6031, 6213, 6216, 6422, 6501, 6504, 6511, 6512, 6515,
7422, 7451, 7456, 7459, 7482, and 7485 of this title and section
1346 of Title 28, and enacting provisions set out as a note under
section 6031 of this title] shall apply to partnership taxable
years beginning after the date of the enactment of this Act [Sept.
3, 1982].
"(2) Section 6232 of the Internal Revenue Code of 1986 [formerly
I.R.C. 1954] shall apply to periods after December 31, 1982.
"(3) The amendments made by sections 402, 403, and 404 shall
apply to any partnership taxable year (or in the case of section
6232 of such Code, to any period) ending after the date of the
enactment of this Act [Sept. 3, 1982] if the partnership, each
partner, and each indirect partner requests such application and
the Secretary of the Treasury or his delegate consents to such
application."
SHORT TITLE
For short title of title IV of Pub. L. 97-248 as the "Tax
Treatment of Partnership Items Act of 1982", see Short Title of
1982 Amendments note set out under section 1 of this title.
-End-
-CITE-
26 USC Sec. 6222 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6222. Partner's return must be consistent with partnership
return or Secretary notified of inconsistency
-STATUTE-
(a) In general
A partner shall, on the partner's return, treat a partnership
item in a manner which is consistent with the treatment of such
partnership item on the partnership return.
(b) Notification of inconsistent treatment
(1) In general
In the case of any partnership item, if -
(A)(i) the partnership has filed a return but the partner's
treatment on his return is (or may be) inconsistent with the
treatment of the item on the partnership return, or
(ii) the partnership has not filed a return, and
(B) the partner files with the Secretary a statement
identifying the inconsistency,
subsection (a) shall not apply to such item.
(2) Partner receiving incorrect information
A partner shall be treated as having complied with subparagraph
(B) of paragraph (1) with respect to a partnership item if the
partner -
(A) demonstrates to the satisfaction of the Secretary that
the treatment of the partnership item on the partner's return
is consistent with the treatment of the item on the schedule
furnished to the partner by the partnership, and
(B) elects to have this paragraph apply with respect to that
item.
(c) Effect of failure to notify
In any case -
(1) described in paragraph (1)(A)(i) of subsection (b), and
(2) in which the partner does not comply with paragraph (1)(B)
of subsection (b),
section 6225 shall not apply to any part of a deficiency
attributable to any computational adjustment required to make the
treatment of the items by such partner consistent with the
treatment of the items on the partnership return.
(d) Addition to tax for failure to comply with section
For addition to tax in the case of a partner's disregard of
requirements of this section, see part II of subchapter A of
chapter 68.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 648; amended Pub. L. 99-514, title XV, Sec. 1503(c)(1), Oct.
22, 1986, 100 Stat. 2743; Pub. L. 101-239, title VII, Sec.
7721(c)(7), Dec. 19, 1989, 103 Stat. 2400.)
-MISC1-
AMENDMENTS
1989 - Subsec. (d). Pub. L. 101-239 substituted "part II of
subchapter A of chapter 68" for "section 6653(a)".
1986 - Subsec. (d). Pub. L. 99-514 struck out "intentional or
negligent" after "case of a partner's".
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 applicable to returns the due date
for which (determined without regard to extensions) is after Dec.
31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note
under section 461 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to returns the due date
for which (determined without regard to extensions) is after Dec.
31, 1986, see section 1503(e) of Pub. L. 99-514, set out as a note
under section 6653 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6229, 6231 of this title.
-End-
-CITE-
26 USC Sec. 6223 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6223. Notice to partners of proceedings
-STATUTE-
(a) Secretary must give partners notice of beginning and completion
of administrative proceedings
The Secretary shall mail to each partner whose name and address
is furnished to the Secretary notice of -
(1) the beginning of an administrative proceeding at the
partnership level with respect to a partnership item, and
(2) the final partnership administrative adjustment resulting
from any such proceeding.
A partner shall not be entitled to any notice under this subsection
unless the Secretary has received (at least 30 days before it is
mailed to the tax matters partner) sufficient information to enable
the Secretary to determine that such partner is entitled to such
notice and to provide such notice to such partner.
(b) Special rules for partnership with more than 100 partners
(1) Partner with less than 1 percent interest
Except as provided in paragraph (2), subsection (a) shall not
apply to a partner if -
(A) the partnership has more than 100 partners, and
(B) the partner has a less than 1 percent interest in the
profits of the partnership.
(2) Secretary must give notice to notice group
If a group of partners in the aggregate having a 5 percent or
more interest in the profits of a partnership so request and
designate one of their members to receive the notice, the member
so designated shall be treated as a partner to whom subsection
(a) applies.
(c) Information base for Secretary's notices, etc.
For purposes of this subchapter -
(1) Information on partnership return
Except as provided in paragraphs (2) and (3), the Secretary
shall use the names, addresses, and profits interests shown on
the partnership return.
(2) Use of additional information
The Secretary shall use additional information furnished to him
by the tax matters partner or any other person in accordance with
regulations prescribed by the Secretary.
(3) Special rule with respect to indirect partners
If any information furnished to the Secretary under paragraph
(1) or (2) -
(A) shows that a person has a profits interest in the
partnership by reason of ownership of an interest through 1 or
more pass-thru partners, and
(B) contains the name, address, and profits interest of such
person,
then the Secretary shall use the name, address, and profits
interest of such person with respect to such partnership interest
(in lieu of the names, addresses, and profits interests of the
pass-thru partners).
(d) Period for mailing notice
(1) Notice of beginning of proceedings
The Secretary shall mail the notice specified in paragraph (1)
of subsection (a) to each partner entitled to such notice not
later than the 120th day before the day on which the notice
specified in paragraph (2) of subsection (a) is mailed to the tax
matters partner.
(2) Notice of final partnership administrative adjustment
The Secretary shall mail the notice specified in paragraph (2)
of subsection (a) to each partner entitled to such notice not
later than the 60th day after the day on which the notice
specified in such paragraph (2) was mailed to the tax matters
partner.
(e) Effect of Secretary's failure to provide notice
(1) Application of subsection
(A) In general
This subsection applies where the Secretary has failed to
mail any notice specified in subsection (a) to a partner
entitled to such notice within the period specified in
subsection (d).
(B) Special rules for partnerships with more than 100 partners
For purposes of subparagraph (A), any partner described in
paragraph (1) of subsection (b) shall be treated as entitled to
notice specified in subsection (a). The Secretary may provide
such notice -
(i) except as provided in clause (ii), by mailing notice to
the tax matters partner, or
(ii) in the case of a member of a notice group which
qualified under paragraph (2) of subsection (b), by mailing
notice to the partner designated for such purpose by the
group.
(2) Proceedings finished
In any case to which this subsection applies, if at the time
the Secretary mails the partner notice of the proceeding -
(A) the period within which a petition for review of a final
partnership administrative adjustment under section 6226 may be
filed has expired and no such petition has been filed, or
(B) the decision of a court in an action begun by such a
petition has become final,
the partner may elect to have such adjustment, such decision, or
a settlement agreement described in paragraph (2) of section
6224(c) with respect to the partnership taxable year to which the
adjustment relates apply to such partner. If the partner does not
make an election under the preceding sentence, the partnership
items of the partner for the partnership taxable year to which
the proceeding relates shall be treated as nonpartnership items.
(3) Proceedings still going on
In any case to which this subsection applies, if paragraph (2)
does not apply, the partner shall be a party to the proceeding
unless such partner elects -
(A) to have a settlement agreement described in paragraph (2)
of section 6224(c) with respect to the partnership taxable year
to which the proceeding relates apply to the partner, or
(B) to have the partnership items of the partner for the
partnership taxable year to which the proceeding relates
treated as nonpartnership items.
(f) Only one notice of final partnership administrative adjustment
If the Secretary mails a notice of final partnership
administrative adjustment for a partnership taxable year with
respect to a partner, the Secretary may not mail another such
notice to such partner with respect to the same taxable year of the
same partnership in the absence of a showing of fraud, malfeasance,
or misrepresentation of a material fact.
(g) Tax matters partner must keep partners informed of proceedings
To the extent and in the manner provided by regulations, the tax
matters partner of a partnership shall keep each partner informed
of all administrative and judicial proceedings for the adjustment
at the partnership level of partnership items.
(h) Pass-thru partner required to forward notice
(1) In general
If a pass-thru partner receives a notice with respect to a
partnership proceeding from the Secretary, the tax matters
partner, or another pass-thru partner, the pass-thru partner
shall, within 30 days of receiving that notice, forward a copy of
that notice to the person or persons holding an interest (through
the pass-thru partner) in the profits or losses of the
partnership for the partnership taxable year to which the notice
relates.
(2) Partnership as pass-thru partner
In the case of a pass-thru partner which is a partnership, the
tax matters partner of such partnership shall be responsible for
forwarding copies of the notice to the partners of such
partnership.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 649.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6224, 6229, 6230, 6231 of
this title.
-End-
-CITE-
26 USC Sec. 6224 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6224. Participation in administrative proceedings; waivers;
agreements
-STATUTE-
(a) Participation in administrative proceedings
Any partner has the right to participate in any administrative
proceeding relating to the determination of partnership items at
the partnership level.
(b) Partner may waive rights
(1) In general
A partner may at any time waive -
(A) any right such partner has under this subchapter, and
(B) any restriction under this subchapter on action by the
Secretary.
(2) Form
Any waiver under paragraph (1) shall be made by a signed notice
in writing filed with the Secretary.
(c) Settlement agreement
In the absence of a showing of fraud, malfeasance, or
misrepresentation of fact -
(1) Binds all parties
A settlement agreement between the Secretary or the Attorney
General (or his delegate) and 1 or more partners in a partnership
with respect to the determination of partnership items for any
partnership taxable year shall (except as otherwise provided in
such agreement) be binding on all parties to such agreement with
respect to the determination of partnership items for such
partnership taxable year. An indirect partner is bound by any
such agreement entered into by the pass-thru partner unless the
indirect partner has been identified as provided in section
6223(c)(3).
(2) Other partners have right to enter into consistent agreements
If the Secretary or the Attorney General (or his delegate)
enters into a settlement agreement with any partner with respect
to partnership items for any partnership taxable year, the
Secretary or the Attorney General (or his delegate) shall offer
to any other partner who so requests settlement terms for the
partnership taxable year which are consistent with those
contained in such settlement agreement. Except in the case of an
election under paragraph (2) or (3) of section 6223(e) to have a
settlement agreement described in this paragraph apply, this
paragraph shall apply with respect to a settlement agreement
entered into with a partner before notice of a final partnership
administrative adjustment is mailed to the tax matters partner
only if such other partner makes the request before the
expiration of 150 days after the day on which such notice is
mailed to the tax matters partner.
(3) Tax matters partner may bind certain other partners
(A) In general
A partner who is not a notice partner (and not a member of a
notice group described in subsection (b)(2) of section 6223)
shall be bound by any settlement agreement -
(i) which is entered into by the tax matters partner, and
(ii) in which the tax matters partner expressly states that
such agreement shall bind the other partners.
(B) Exception
Subparagraph (A) shall not apply to any partner who (within
the time prescribed by the Secretary) files a statement with
the Secretary providing that the tax matters partner shall not
have the authority to enter into a settlement agreement on
behalf of such partner.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 651; amended Pub. L. 107-147, title IV, Sec. 416(d)(1)(A),
Mar. 9, 2002, 116 Stat. 55.)
-MISC1-
AMENDMENTS
2002 - Subsec. (c)(1), (2). Pub. L. 107-147 inserted "or the
Attorney General (or his delegate)" after "Secretary" wherever
appearing.
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-147, title IV, Sec. 416(d)(2), Mar. 9, 2002, 116
Stat. 55, provided that: "The amendments made by this subsection
[amending this section and sections 6229, 6231, and 6234 of this
title] shall apply with respect to settlement agreements entered
into after the date of the enactment of this Act [Mar. 9, 2002]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6223, 6234, 6601 of this
title.
-End-
-CITE-
26 USC Sec. 6225 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6225. Assessments made only after partnership level
proceedings are completed
-STATUTE-
(a) Restriction on assessment and collection
Except as otherwise provided in this subchapter, no assessment of
a deficiency attributable to any partnership item may be made (and
no levy or proceeding in any court for the collection of any such
deficiency may be made, begun, or prosecuted) before -
(1) the close of the 150th day after the day on which a notice
of a final partnership administrative adjustment was mailed to
the tax matters partner, and
(2) if a proceeding is begun in the Tax Court under section
6226 during such 150-day period, the decision of the court in
such proceeding has become final.
(b) Premature action may be enjoined
Notwithstanding section 7421(a), any action which violates
subsection (a) may be enjoined in the proper court, including the
Tax Court. The Tax Court shall have no jurisdiction to enjoin any
action or proceeding under this subsection unless a timely petition
for a readjustment of the partnership items for the taxable year
has been filed and then only in respect of the adjustments that are
the subject of such petition.
(c) Limit where no proceeding begun
If no proceeding under section 6226 is begun with respect to any
final partnership administrative adjustment during the 150-day
period described in subsection (a), the deficiency assessed against
any partner with respect to the partnership items to which such
adjustment relates shall not exceed the amount determined in
accordance with such adjustment.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 652; amended Pub. L. 105-34, title XII, Sec. 1239(a), Aug. 5,
1997, 111 Stat. 1027.)
-MISC1-
AMENDMENTS
1997 - Pub. L. 105-34 substituted "the proper court, including
the Tax Court. The Tax Court shall have no jurisdiction to enjoin
any action or proceeding under this subsection unless a timely
petition for a readjustment of the partnership items for the
taxable year has been filed and then only in respect of the
adjustments that are the subject of such petition." for "the proper
court."
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1239(f) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and sections 6226,
6230, 6501, 6512, 7421, 7459, and 7482 of this title] shall apply
to partnership taxable years ending after the date of the enactment
of this Act [Aug. 5, 1997]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6222, 6230, 7421 of this
title.
-End-
-CITE-
26 USC Sec. 6226 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6226. Judicial review of final partnership administrative
adjustments
-STATUTE-
(a) Petition by tax matters partner
Within 90 days after the day on which a notice of a final
partnership administrative adjustment is mailed to the tax matters
partner, the tax matters partner may file a petition for a
readjustment of the partnership items for such taxable year with -
(1) the Tax Court,
(2) the district court of the United States for the district in
which the partnership's principal place of business is located,
or
(3) the Court of Federal Claims.
(b) Petition by partner other than tax matters partner
(1) In general
If the tax matters partner does not file a readjustment
petition under subsection (a) with respect to any final
partnership administrative adjustment, any notice partner (and
any 5-percent group) may, within 60 days after the close of the
90-day period set forth in subsection (a), file a petition for a
readjustment of the partnership items for the taxable year
involved with any of the courts described in subsection (a).
(2) Priority of the Tax Court action
If more than 1 action is brought under paragraph (1) with
respect to any partnership for any partnership taxable year, the
first such action brought in the Tax Court shall go forward.
(3) Priority outside the Tax Court
If more than 1 action is brought under paragraph (1) with
respect to any partnership for any taxable year but no such
action is brought in the Tax Court, the first such action brought
shall go forward.
(4) Dismissal of other actions
If an action is brought under paragraph (1) in addition to the
action which goes forward under paragraph (2) or (3), such action
shall be dismissed.
(5) Treatment of premature petitions
If -
(A) a petition for a readjustment of partnership items for
the taxable year involved is filed by a notice partner (or a
5-percent group) during the 90-day period described in
subsection (a), and
(B) no action is brought under paragraph (1) during the
60-day period described therein with respect to such taxable
year which is not dismissed,
such petition shall be treated for purposes of paragraph (1) as
filed on the last day of such 60-day period.
(6) Tax matters partner may intervene
The tax matters partner may intervene in any action brought
under this subsection.
(c) Partners treated as parties
If an action is brought under subsection (a) or (b) with respect
to a partnership for any partnership taxable year -
(1) each person who was a partner in such partnership at any
time during such year shall be treated as a party to such action,
and
(2) the court having jurisdiction of such action shall allow
each such person to participate in the action.
(d) Partner must have interest in outcome
(1) In order to be party to action
Subsection (c) shall not apply to a partner after the day on
which -
(A) the partnership items of such partner for the partnership
taxable year became nonpartnership items by reason of 1 or more
of the events described in subsection (b) of section 6231, or
(B) the period within which any tax attributable to such
partnership items may be assessed against that partner expired.
Notwithstanding subparagraph (B), any person treated under
subsection (c) as a party to an action shall be permitted to
participate in such action (or file a readjustment petition under
subsection (b) or paragraph (2) of this subsection) solely for
the purpose of asserting that the period of limitations for
assessing any tax attributable to partnership items has expired
with respect to such person, and the court having jurisdiction of
such action shall have jurisdiction to consider such assertion.
(2) To file petition
No partner may file a readjustment petition under subsection
(b) unless such partner would (after the application of paragraph
(1) of this subsection) be treated as a party to the proceeding.
(e) Jurisdictional requirement for bringing action in district
court or Court of Federal Claims
(1) In general
A readjustment petition under this section may be filed in a
district court of the United States or the Court of Federal
Claims only if the partner filing the petition deposits with the
Secretary, on or before the day the petition is filed, the amount
by which the tax liability of the partner would be increased if
the treatment of partnership items on the partner's return were
made consistent with the treatment of partnership items on the
partnership return, as adjusted by the final partnership
administrative adjustment. In the case of a petition filed by a
5-percent group, the requirement of the preceding sentence shall
apply to each member of the group. The court may by order provide
that the jurisdictional requirements of this paragraph are
satisfied where there has been a good faith attempt to satisfy
such requirements and any shortfall in the amount required to be
deposited is timely corrected.
(2) Refund on request
If an action brought in a district court of the United States
or in the Court of Federal Claims is dismissed by reason of the
priority of a Tax Court action under paragraph (2) of subsection
(b), the Secretary shall, at the request of the partner who made
the deposit, refund the amount deposited under paragraph (1).
(3) Interest payable
Any amount deposited under paragraph (1), while deposited,
shall not be treated as a payment of tax for purposes of this
title (other than chapter 67).
(f) Scope of judicial review
A court with which a petition is filed in accordance with this
section shall have jurisdiction to determine all partnership items
of the partnership for the partnership taxable year to which the
notice of final partnership administrative adjustment relates, the
proper allocation of such items among the partners, and the
applicability of any penalty, addition to tax, or additional amount
which relates to an adjustment to a partnership item.
(g) Determination of court reviewable
Any determination by a court under this section shall have the
force and effect of a decision of the Tax Court or a final judgment
or decree of the district court or the Court of Federal Claims, as
the case may be, and shall be reviewable as such. With respect to
the partnership, only the tax matters partner, a notice partner, or
a 5-percent group may seek review of a determination by a court
under this section.
(h) Effect of decision dismissing action
If an action brought under this section is dismissed (other than
under paragraph (4) of subsection (b)), the decision of the court
dismissing the action shall be considered as its decision that the
notice of final partnership administrative adjustment is correct,
and an appropriate order shall be entered in the records of the
court.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 653; amended Pub. L. 97-448, title III, Sec. 306(c)(1)(A),
Jan. 12, 1983, 96 Stat. 2406; Pub. L. 102-572, title IX, Sec.
902(b)(2), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 105-34, title
XII, Secs. 1238(b)(1), 1239(b), 1240(a), Aug. 5, 1997, 111 Stat.
1026-1028.)
-MISC1-
AMENDMENTS
1997 - Subsec. (b)(5), (6). Pub. L. 105-34, Sec. 1240(a), added
par. (5) and redesignated former par. (5) as (6).
Subsec. (d)(1). Pub. L. 105-34, Sec. 1239(b), inserted concluding
provisions.
Subsec. (f). Pub. L. 105-34, Sec. 1238(b)(1), substituted
"relates," for "relates and" and inserted ", and the applicability
of any penalty, addition to tax, or additional amount which relates
to an adjustment to a partnership item" before period at end.
1992 - Subsecs. (a)(3), (e), (g). Pub. L. 102-572 substituted
"Court of Federal Claims" for "Claims Court" wherever appearing.
1983 - Subsec. (g). Pub. L. 97-448 substituted "With respect to
the partnership, only the tax matters partner" for "Only the tax
matters partner".
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 1238(b)(1) of Pub. L. 105-34 applicable to
partnership taxable years ending after Aug. 5, 1997, see section
1238(c) of Pub. L. 105-34, set out as a note under section 6221 of
this title.
Amendment by section 1239(b) of Pub. L. 105-34 applicable to
partnership taxable years ending after Aug. 5, 1997, see section
1239(f) of Pub. L. 105-34, set out as a note under section 6225 of
this title.
Section 1240(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall apply to
petitions filed after the date of the enactment of this Act [Aug.
5, 1997]."
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section
911 of Pub. L. 102-572, set out as a note under section 171 of
Title 28, Judiciary and Judicial Procedure.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective as if included in the
provisions of the Tax Equity and Fiscal Responsibility Act of 1982,
Pub. L. 97-248, to which such amendment relates, see section 311(d)
of Pub. L. 97-448, set out as a note under section 31 of this
title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6223, 6225, 6228, 6229,
6230, 6234, 7451, 7459, 7482, 7485 of this title; title 28 sections
1346, 1508.
-End-
-CITE-
26 USC Sec. 6227 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6227. Administrative adjustment requests
-STATUTE-
(a) General rule
A partner may file a request for an administrative adjustment of
partnership items for any partnership taxable year at any time
which is -
(1) within 3 years after the later of -
(A) the date on which the partnership return for such year is
filed, or
(B) the last day for filing the partnership return for such
year (determined without regard to extensions), and
(2) before the mailing to the tax matters partner of a notice
of final partnership administrative adjustment with respect to
such taxable year.
(b) Special rule in case of extension of period of limitations
under section 6229
The period prescribed by subsection (a)(1) for filing of a
request for an administrative adjustment shall be extended -
(1) for the period within which an assessment may be made
pursuant to an agreement (or any extension thereof) under section
6229(b), and
(2) for 6 months thereafter.
(c) Requests by tax matters partner on behalf of partnership
(1) Substituted return
If the tax matters partner -
(A) files a request for an administrative adjustment, and
(B) asks that the treatment shown on the request be
substituted for the treatment of partnership items on the
partnership return to which the request relates,
the Secretary may treat the changes shown on such request as
corrections of mathematical or clerical errors appearing on the
partnership return.
(2) Requests not treated as substituted returns
(A) In general
If the tax matters partner files an administrative adjustment
request on behalf of the partnership which is not treated as a
substituted return under paragraph (1), the Secretary may, with
respect to all or any part of the requested adjustments -
(i) without conducting any proceeding, allow or make to all
partners the credits or refunds arising from the requested
adjustments,
(ii) conduct a partnership proceeding under this
subchapter, or
(iii) take no action on the request.
(B) Exceptions
Clause (i) of subparagraph (A) shall not apply with respect
to a partner after the day on which the partnership items
become nonpartnership items by reason of 1 or more of the
events described in subsection (b) of section 6231.
(3) Request must show effect on distributive shares
The tax matters partner shall furnish with any administrative
adjustment request on behalf of the partnership revised schedules
showing the effect of such request on the distributive shares of
the partners and such other information as may be required under
regulations.
(d) Other requests
If any partner files a request for an administrative adjustment
(other than a request described in subsection (c)), the Secretary
may -
(1) process the request in the same manner as a claim for
credit or refund with respect to items which are not partnership
items,
(2) assess any additional tax that would result from the
requested adjustments,
(3) mail to the partner, under subparagraph (A) of section
6231(b)(1) (relating to items becoming nonpartnership items), a
notice that all partnership items of the partner for the
partnership taxable year to which such request relates shall be
treated as nonpartnership items, or
(4) conduct a partnership proceeding.
(e) Requests with respect to bad debts or worthless securities
In the case of that portion of any request for an administrative
adjustment which relates to the deductibility by the partnership
under section 166 of a debt as a debt which became worthless, or
under section 165(g) of a loss from worthlessness of a security,
the period prescribed in subsection (a)(1) shall be 7 years from
the last day for filing the partnership return for the year with
respect to which such request is made (determined without regard to
extensions).
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 655; amended Pub. L. 105-34, title XII, Secs. 1236(a),
1243(a), Aug. 5, 1997, 111 Stat. 1025, 1029; Pub. L. 107-147, title
IV, Sec. 417(19)(A), Mar. 9, 2002, 116 Stat. 56.)
-MISC1-
AMENDMENTS
2002 - Subsec. (d). Pub. L. 107-147 substituted "subsection (c)"
for "subsection (b)" in introductory provisions.
1997 - Subsecs. (b) to (d). Pub. L. 105-34, Sec. 1236(a), added
subsec. (b) and redesignated former subsecs. (b) and (c) as (c) and
(d), respectively.
Subsec. (e). Pub. L. 105-34, Sec. 1243(a), added subsec. (e).
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1236(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall take effect as
if included in the amendments made by section 402 of the Tax Equity
and Fiscal Responsibility Act of 1982 [Pub. L. 97-248]."
Section 1243(b) of Pub. L. 105-34 provided that:
"(1) In general. - The amendment made by subsection (a) [amending
this section] shall take effect as if included in the amendments
made by section 402 of the Tax Equity and Fiscal Responsibility Act
of 1982 [Pub. L. 97-248].
"(2) Treatment of requests filed before date of enactment. - In
the case of that portion of any request (filed before the date of
the enactment of this Act [Aug. 5, 1997]) for an administrative
adjustment which relates to the deductibility of a debt as a debt
which became worthless or the deductibility of a loss from the
worthlessness of a security -
"(A) paragraph (2) of section 6227(a) of the Internal Revenue
Code of 1986 shall not apply,
"(B) the period for filing a petition under section 6228 of the
Internal Revenue Code of 1986 with respect to such request shall
not expire before the date 6 months after the date of the
enactment of this Act, and
"(C) such a petition may be filed without regard to whether
there was a notice of the beginning of an administrative
proceeding or a final partnership administrative adjustment."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6228, 6230, 6231, 6422,
6515 of this title.
-End-
-CITE-
26 USC Sec. 6228 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6228. Judicial review where administrative adjustment request
is not allowed in full
-STATUTE-
(a) Request on behalf of partnership
(1) In general
If any part of an administrative adjustment request filed by
the tax matters partner under subsection (c) of section 6227 is
not allowed by the Secretary, the tax matters partner may file a
petition for an adjustment with respect to the partnership items
to which such part of the request relates with -
(A) the Tax Court,
(B) the district court of the United States for the district
in which the principal place of business of the partnership is
located, or
(C) the Court of Federal Claims.
(2) Period for filing petition
(A) In general
A petition may be filed under paragraph (1) with respect to
partnership items for a partnership taxable year only -
(i) after the expiration of 6 months from the date of
filing of the request under section 6227, and
(ii) before the date which is 2 years after the date of
such request.
(B) No petition after notice of beginning of administrative
proceeding
No petition may be filed under paragraph (1) after the day
the Secretary mails to the partnership a notice of the
beginning of an administrative proceeding with respect to the
partnership taxable year to which such request relates.
(C) Failure by Secretary to issue timely notice of adjustment
If the Secretary -
(i) mails the notice referred to in subparagraph (B) before
the expiration of the 2-year period referred to in clause
(ii) of subparagraph (A), and
(ii) fails to mail a notice of final partnership
administrative adjustment with respect to the partnership
taxable year to which the request relates before the
expiration of the period described in section 6229(a)
(including any extension by agreement),
subparagraph (B) shall cease to apply with respect to such
request, and the 2-year period referred to in clause (ii) of
subparagraph (A) shall not expire before the date 6 months
after the expiration of the period described in section 6229(a)
(including any extension by agreement).
(D) Extension of time
The 2-year period described in subparagraph (A)(ii) shall be
extended for such period as may be agreed upon in writing
between the tax matters partner and the Secretary.
(3) Coordination with administrative adjustment
(A) Administrative adjustment before filing of petition
No petition may be filed under this subsection after the
Secretary mails to the tax matters partner a notice of final
partnership administrative adjustment for the partnership
taxable year to which the request under section 6227 relates.
(B) Administrative adjustment after filing but before hearing
of petition
If the Secretary mails to the tax matters partner a notice of
final partnership administrative adjustment for the partnership
taxable year to which the request under section 6227 relates
after the filing of a petition under this subsection but before
the hearing of such petition, such petition shall be treated as
an action brought under section 6226 with respect to that
administrative adjustment, except that subsection (e) of
section 6226 shall not apply.
(C) Notice must be before expiration of statute of limitations
A notice of final partnership administrative adjustment for
the partnership taxable year shall be taken into account under
subparagraphs (A) and (B) only if such notice is mailed before
the expiration of the period prescribed by section 6229 for
making assessments of tax attributable to partnership items for
such taxable year.
(4) Partners treated as party to action
(A) In general
If an action is brought by the tax matters partner under
paragraph (1) with respect to any request for an adjustment of
a partnership item for any taxable year -
(i) each person who was a partner in such partnership at
any time during the partnership taxable year involved shall
be treated as a party to such action, and
(ii) the court having jurisdiction of such action shall
allow each such person to participate in the action.
(B) Partners must have interest in outcome
For purposes of subparagraph (A), rules similar to the rules
of paragraph (1) of section 6226(d) shall apply.
(5) Scope of judicial review
Except in the case described in subparagraph (B) of paragraph
(3), a court with which a petition is filed in accordance with
this subsection shall have jurisdiction to determine only those
partnership items to which the part of the request under section
6227 not allowed by the Secretary relates and those items with
respect to which the Secretary asserts adjustments as offsets to
the adjustments requested by the tax matters partner.
(6) Determination of court reviewable
Any determination by a court under this subsection shall have
the force and effect of a decision of the Tax Court or a final
judgment or decree of the district court or the Court of Federal
Claims, as the case may be, and shall be reviewable as such. With
respect to the partnership, only the tax matters partner, a
notice partner, or a 5-percent group may seek review of a
determination by a court under this subsection.
(b) Other requests
(1) Notice providing that items become nonpartnership items
If the Secretary mails to a partner, under subparagraph (A) of
section 6231(b)(1) (relating to items ceasing to be partnership
items), a notice that all partnership items of the partner for
the partnership taxable year to which a timely request for
administrative adjustment under subsection (d) of section 6227
relates shall be treated as nonpartnership items -
(A) such request shall be treated as a claim for credit or
refund of an overpayment attributable to nonpartnership items,
and
(B) the partner may bring an action under section 7422 with
respect to such claim at any time within 2 years of the mailing
of such notice.
(2) Other cases
(A) In general
If the Secretary fails to allow any part of an administrative
adjustment request filed under subsection (d) of section 6227
by a partner and paragraph (1) does not apply -
(i) such partner may, pursuant to section 7422, begin a
civil action for refund of any amount due by reason of the
adjustments described in such part of the request, and
(ii) on the beginning of such civil action, the partnership
items of such partner for the partnership taxable year to
which such part of such request relates shall be treated as
nonpartnership items for purposes of this subchapter.
(B) Period for filing petition
(i) In general
An action may be begun under subparagraph (A) with respect
to an administrative adjustment request for a partnership
taxable year only -
(I) after the expiration of 6 months from the date of
filing of the request under section 6227, and
(II) before the date which is 2 years after the date of
filing of such request.
(ii) Extension of time
The 2-year period described in subclause (II) of clause (i)
shall be extended for such period as may be agreed upon in
writing between the partner and the Secretary.
(C) Action barred after partnership proceeding has begun
No petition may be filed under subparagraph (A) with respect
to an administrative adjustment request for a partnership
taxable year after the Secretary mails to the partnership a
notice of the beginning of a partnership proceeding with
respect to such year.
(D) Failure by Secretary to issue timely notice of adjustment
If the Secretary -
(i) mails the notice referred to in subparagraph (C) before
the expiration of the 2-year period referred to in clause
(i)(II) of subparagraph (B), and
(ii) fails to mail a notice of final partnership
administrative adjustment with respect to the partnership
taxable year to which the request relates before the
expiration of the period described in section 6229(a)
(including any extension by agreement),
subparagraph (C) shall cease to apply with respect to such
request, and the 2-year period referred to in clause (i)(II) of
subparagraph (B) shall not expire before the date 6 months
after the expiration of the period described in section 6229(a)
(including any extension by agreement).
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 656; amended Pub. L. 97-448, title III, Sec. 306(c)(1)(B),
Jan. 12, 1983, 96 Stat. 2406; Pub. L. 102-572, title IX, Sec.
902(b)(2), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 107-147, title
IV, Sec. 417(19)(B), Mar. 9, 2002, 116 Stat. 56.)
-MISC1-
AMENDMENTS
2002 - Subsec. (a)(1). Pub. L. 107-147, Sec. 417(19)(B)(i),
substituted "subsection (c) of section 6227" for "subsection (b) of
section 6227".
Subsec. (a)(3)(A). Pub. L. 107-147, Sec. 417(19)(B)(ii), struck
out "subsection (b) of" before "section 6227".
Subsec. (b)(1), (2)(A). Pub. L. 107-147, Sec. 417(19)(B)(iii),
substituted "subsection (d) of section 6227" for "subsection (c) of
section 6227".
1992 - Subsec. (a)(1)(C), (6). Pub. L. 102-572 substituted "Court
of Federal Claims" for "Claims Court".
1983 - Subsec. (a)(6). Pub. L. 97-448 substituted "With respect
to the partnership, only the tax matters partner" for "Only the tax
matters partner".
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section
911 of Pub. L. 102-572, set out as a note under section 171 of
Title 28, Judiciary and Judicial Procedure.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective as if included in the
provisions of the Tax Equity and Fiscal Responsibility Act of 1982,
Pub. L. 97-248, to which such amendment relates, see section 311(d)
of Pub. L. 97-448, set out as a note under section 31 of this
title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6230, 6231, 7422, 7451,
7459, 7482, 7485 of this title; title 28 sections 1346, 1508.
-End-
-CITE-
26 USC Sec. 6229 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6229. Period of limitations for making assessments
-STATUTE-
(a) General rule
Except as otherwise provided in this section, the period for
assessing any tax imposed by subtitle A with respect to any person
which is attributable to any partnership item (or affected item)
for a partnership taxable year shall not expire before the date
which is 3 years after the later of -
(1) the date on which the partnership return for such taxable
year was filed, or
(2) the last day for filing such return for such year
(determined without regard to extensions).
(b) Extension by agreement
(1) In general
The period described in subsection (a) (including an extension
period under this subsection) may be extended -
(A) with respect to any partner, by an agreement entered into
by the Secretary and such partner, and
(B) with respect to all partners, by an agreement entered
into by the Secretary and the tax matters partner (or any other
person authorized by the partnership in writing to enter into
such an agreement),
before the expiration of such period.
(2) Special rule with respect to debtors in title 11 cases
Notwithstanding any other law or rule of law, if an agreement
is entered into under paragraph (1)(B) and the agreement is
signed by a person who would be the tax matters partner but for
the fact that, at the time that the agreement is executed, the
person is a debtor in a bankruptcy proceeding under title 11 of
the United States Code, such agreement shall be binding on all
partners in the partnership unless the Secretary has been
notified of the bankruptcy proceeding in accordance with
regulations prescribed by the Secretary.
(3) Coordination with section 6501(c)(4)
Any agreement under section 6501(c)(4) shall apply with respect
to the period described in subsection (a) only if the agreement
expressly provides that such agreement applies to tax
attributable to partnership items.
(c) Special rule in case of fraud, etc.
(1) False return
If any partner has, with the intent to evade tax, signed or
participated directly or indirectly in the preparation of a
partnership return which includes a false or fraudulent item -
(A) in the case of partners so signing or participating in
the preparation of the return, any tax imposed by subtitle A
which is attributable to any partnership item (or affected
item) for the partnership taxable year to which the return
relates may be assessed at any time, and
(B) in the case of all other partners, subsection (a) shall
be applied with respect to such return by substituting "6
years" for "3 years".
(2) Substantial omission of income
If any partnership omits from gross income an amount properly
includible therein which is in excess of 25 percent of the amount
of gross income stated in its return, subsection (a) shall be
applied by substituting "6 years" for "3 years".
(3) No return
In the case of a failure by a partnership to file a return for
any taxable year, any tax attributable to a partnership item (or
affected item) arising in such year may be assessed at any time.
(4) Return filed by Secretary
For purposes of this section, a return executed by the
Secretary under subsection (b) of section 6020 on behalf of the
partnership shall not be treated as a return of the partnership.
(d) Suspension when Secretary makes administrative adjustment
If notice of a final partnership administrative adjustment with
respect to any taxable year is mailed to the tax matters partner,
the running of the period specified in subsection (a) (as modified
by other provisions of this section) shall be suspended -
(1) for the period during which an action may be brought under
section 6226 (and, if a petition is filed under section 6226 with
respect to such administrative adjustment, until the decision of
the court becomes final), and
(2) for 1 year thereafter.
(e) Unidentified partner
If -
(1) the name, address, and taxpayer identification number of a
partner are not furnished on the partnership return for a
partnership taxable year, and
(2)(A) the Secretary, before the expiration of the period
otherwise provided under this section with respect to such
partner, mails to the tax matters partner the notice specified in
paragraph (2) of section 6223(a) with respect to such taxable
year, or
(B) the partner has failed to comply with subsection (b) of
section 6222 (relating to notification of inconsistent treatment)
with respect to any partnership item for such taxable year,
the period for assessing any tax imposed by subtitle A which is
attributable to any partnership item (or affected item) for such
taxable year shall not expire with respect to such partner before
the date which is 1 year after the date on which the name, address,
and taxpayer identification number of such partner are furnished to
the Secretary.
(f) Special rules
(1) Items becoming nonpartnership items
If before the expiration of the period otherwise provided in
this section for assessing any tax imposed by subtitle A with
respect to the partnership items of a partner for the partnership
taxable year, such items become nonpartnership items by reason of
1 or more of the events described in subsection (b) of section
6231, the period for assessing any tax imposed by subtitle A
which is attributable to such items (or any item affected by such
items) shall not expire before the date which is 1 year after the
date on which the items become nonpartnership items. The period
described in the preceding sentence (including any extension
period under this sentence) may be extended with respect to any
partner by agreement entered into by the Secretary and such
partner.
(2) Special rule for partial settlement agreements
If a partner enters into a settlement agreement with the
Secretary or the Attorney General (or his delegate) with respect
to the treatment of some of the partnership items in dispute for
a partnership taxable year but other partnership items for such
year remain in dispute, the period of limitations for assessing
any tax attributable to the settled items shall be determined as
if such agreement had not been entered into.
(g) Period of limitations for penalties
The provisions of this section shall apply also in the case of
any addition to tax or an additional amount imposed under
subchapter A of chapter 68 which arises with respect to any tax
imposed under subtitle A in the same manner as if such addition or
additional amount were a tax imposed by subtitle A.
(h) Suspension during pendency of bankruptcy proceeding
If a petition is filed naming a partner as a debtor in a
bankruptcy proceeding under title 11 of the United States Code, the
running of the period of limitations provided in this section with
respect to such partner shall be suspended -
(1) for the period during which the Secretary is prohibited by
reason of such bankruptcy proceeding from making an assessment,
and
(2) for 60 days thereafter.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 659; amended Pub. L. 99-514, title XVIII, Sec. 1875(d)(1),
Oct. 22, 1986, 100 Stat. 2896; Pub. L. 100-647, title I, Sec.
1018(o)(3), Nov. 10, 1988, 102 Stat. 3585; Pub. L. 105-34, title
XII, Secs. 1233(a)-(c), 1235(a), Aug. 5, 1997, 111 Stat. 1023,
1024; Pub. L. 107-147, title IV, Sec. 416(d)(1)(B), Mar. 9, 2002,
116 Stat. 55.)
-MISC1-
AMENDMENTS
2002 - Subsec. (f)(2). Pub. L. 107-147 inserted "or the Attorney
General (or his delegate)" after "Secretary".
1997 - Subsec. (b)(2), (3). Pub. L. 105-34, Sec. 1233(c), added
par. (2) and redesignated former par. (2) as (3).
Subsec. (d)(1). Pub. L. 105-34, Sec. 1233(a), substituted "(and,
if a petition is filed under section 6226 with respect to such
administrative adjustment, until the decision of the court becomes
final), and" for "(and, if an action with respect to such
administrative adjustment is brought during such period, until the
decision of the court in such action becomes final), and".
Subsec. (f). Pub. L. 105-34, Sec. 1235(a), substituted "Special
rules" for "Items becoming nonpartnership items" in heading,
designated existing provisions as par. (1), added heading, and
realigned margins, and added par. (2).
Subsec. (h). Pub. L. 105-34, Sec. 1233(b), added subsec. (h).
1988 - Subsec. (f). Pub. L. 100-647 inserted sentence at end
relating to extension of period with respect to any partner by
agreement entered into by Secretary and such partner.
1986 - Subsec. (g). Pub. L. 99-514 added subsec. (g).
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-147 applicable with respect to
settlement agreements entered into after Mar. 9, 2002, see section
416(d)(2) of Pub. L. 107-147, set out as a note under section 6224
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1233(d) of Pub. L. 105-34 provided that:
"(1) Subsections (a) and (b). - The amendments made by
subsections (a) and (b) [amending this section] shall apply to
partnership taxable years with respect to which the period under
section 6229 of the Internal Revenue Code of 1986 [26 U.S.C. 6229]
for assessing tax has not expired on or before the date of the
enactment of this Act [Aug. 5, 1997].
"(2) Subsection (c). - The amendment made by subsection (c)
[amending this section] shall apply to agreements entered into
after the date of the enactment of this Act."
Section 1235(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall apply to
settlements entered into after the date of the enactment of this
Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 effective, except as otherwise
provided, as if included in the provisions of the Tax Reform Act of
1984, Pub. L. 98-369, div. A, to which such amendment relates, see
section 1881 of Pub. L. 99-514, set out as a note under section 48
of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6227, 6228, 6230, 6234,
6255, 6501, 6503, 6504, 6512 of this title.
-End-
-CITE-
26 USC Sec. 6230 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6230. Additional administrative provisions
-STATUTE-
(a) Coordination with deficiency proceedings
(1) In general
Except as provided in paragraph (2) or (3), subchapter B of
this chapter shall not apply to the assessment or collection of
any computational adjustment.
(2) Deficiency proceedings to apply in certain cases
(A) Subchapter B shall apply to any deficiency attributable
to -
(i) affected items which require partner level
determinations (other than penalties, additions to tax, and
additional amounts that relate to adjustments to partnership
items), or
(ii) items which have become nonpartnership items (other
than by reason of section 6231(b)(1)(C)) and are described in
section 6231(e)(1)(B).
(B) Subchapter B shall be applied separately with respect to
each deficiency described in subparagraph (A) attributable to
each partnership.
(C) Notwithstanding any other law or rule of law, any notice
or proceeding under subchapter B with respect to a deficiency
described in this paragraph shall not preclude or be precluded
by any other notice, proceeding, or determination with respect
to a partner's tax liability for a taxable year.
(3) Special rule in case of assertion by partner's spouse of
innocent spouse relief
(A) Notwithstanding section 6404(b), if the spouse of a partner
asserts that section 6013(e) applies with respect to a liability
that is attributable to any adjustment to a partnership item
(including any liability for any penalties, additions to tax, or
additional amounts relating to such adjustment), then such spouse
may file with the Secretary within 60 days after the notice of
computational adjustment is mailed to the spouse a request for
abatement of the assessment specified in such notice. Upon
receipt of such request, the Secretary shall abate the
assessment. Any reassessment of the tax with respect to which an
abatement is made under this subparagraph shall be subject to the
deficiency procedures prescribed by subchapter B. The period for
making any such reassessment shall not expire before the
expiration of 60 days after the date of such abatement.
(B) If the spouse files a petition with the Tax Court pursuant
to section 6213 with respect to the request for abatement
described in subparagraph (A), the Tax Court shall only have
jurisdiction pursuant to this section to determine whether the
requirements of section 6013(e) have been satisfied. For purposes
of such determination, the treatment of partnership items (and
the applicability of any penalties, additions to tax, or
additional amounts) under the settlement, the final partnership
administrative adjustment, or the decision of the court
(whichever is appropriate) that gave rise to the liability in
question shall be conclusive.
(C) Rules similar to the rules contained in subparagraphs (B)
and (C) of paragraph (2) shall apply for purposes of this
paragraph.
(b) Mathematical and clerical errors appearing on partnership
return
(1) In general
Section 6225 shall not apply to any adjustment necessary to
correct a mathematical or clerical error (as defined in section
6213(g)(2)) appearing on the partnership return.
(2) Exception
Paragraph (1) shall not apply to a partner if, within 60 days
after the day on which notice of the correction of the error is
mailed to the partner, such partner files with the Secretary a
request that the correction not be made.
(c) Claims arising out of erroneous computations, etc.
(1) In general
A partner may file a claim for refund on the grounds that -
(A) the Secretary erroneously computed any computational
adjustment necessary -
(i) to make the partnership items on the partner's return
consistent with the treatment of the partnership items on the
partnership return, or
(ii) to apply to the partner a settlement, a final
partnership administrative adjustment, or the decision of a
court in an action brought under section 6226 or section
6228(a),
(B) the Secretary failed to allow a credit or to make a
refund to the partner in the amount of the overpayment
attributable to the application to the partner of a settlement,
a final partnership administrative adjustment, or the decision
of a court in an action brought under section 6226 or section
6228(a), or
(C) the Secretary erroneously imposed any penalty, addition
to tax, or additional amount which relates to an adjustment to
a partnership item.
(2) Time for filing claim
(A) Under paragraph (1)(A) or (C)
Any claim under subparagraph (A) or (C) of paragraph (1)
shall be filed within 6 months after the day on which the
Secretary mails the notice of computational adjustment to the
partner.
(B) Under paragraph (1)(B)
Any claim under paragraph (1)(B) shall be filed within 2
years after whichever of the following days is appropriate:
(i) the day on which the settlement is entered into,
(ii) the day on which the period during which an action may
be brought under section 6226 with respect to the final
partnership administrative adjustment expires, or
(iii) the day on which the decision of the court becomes
final.
(3) Suit if claim not allowed
If any portion of a claim under paragraph (1) is not allowed,
the partner may bring suit with respect to such portion within
the period specified in subsection (a) of section 6532 (relating
to periods of limitations on refund suits).
(4) No review of substantive issues
For purposes of any claim or suit under this subsection, the
treatment of partnership items on the partnership return, under
the settlement, under the final partnership administrative
adjustment, or under the decision of the court (whichever is
appropriate) shall be conclusive. In addition, the determination
under the final partnership administrative adjustment or under
the decision of the court (whichever is appropriate) concerning
the applicability of any penalty, addition to tax, or additional
amount which relates to an adjustment to a partnership item shall
also be conclusive. Notwithstanding the preceding sentence, the
partner shall be allowed to assert any partner level defenses
that may apply or to challenge the amount of the computational
adjustment.
(5) Rules for seeking innocent spouse relief
(A) In general
The spouse of a partner may file a claim for refund on the
ground that the Secretary failed to relieve the spouse under
section 6015 from a liability that is attributable to an
adjustment to a partnership item (including any liability for
any penalties, additions to tax, or additional amounts relating
to such adjustment).
(B) Time for filing claim
Any claim under subparagraph (A) shall be filed within 6
months after the day on which the Secretary mails to the spouse
the notice of computational adjustment referred to in
subsection (a)(3)(A).
(C) Suit if claim not allowed
If the claim under subparagraph (B) is not allowed, the
spouse may bring suit with respect to the claim within the
period specified in paragraph (3).
(D) Prior determinations are binding
For purposes of any claim or suit under this paragraph, the
treatment of partnership items (and the applicability of any
penalties, additions to tax, or additional amounts) under the
settlement, the final partnership administrative adjustment, or
the decision of the court (whichever is appropriate) that gave
rise to the liability in question shall be conclusive.
(d) Special rules with respect to credits or refunds attributable
to partnership items
(1) In general
Except as otherwise provided in this subsection, no credit or
refund of an overpayment attributable to a partnership item (or
an affected item) for a partnership taxable year shall be allowed
or made to any partner after the expiration of the period of
limitation prescribed in section 6229 with respect to such
partner for assessment of any tax attributable to such item.
(2) Administrative adjustment request
If a request for an administrative adjustment under section
6227 with respect to a partnership item is timely filed, credit
or refund of any overpayment attributable to such partnership
item (or an affected item) may be allowed or made at any time
before the expiration of the period prescribed in section 6228
for bringing suit with respect to such request.
(3) Claim under subsection (c)
If a timely claim is filed under subsection (c) for a credit or
refund of an overpayment attributable to a partnership item (or
affected item), credit or refund of such overpayment may be
allowed or made at any time before the expiration of the period
specified in section 6532 (relating to periods of limitations on
suits) for bringing suit with respect to such claim.
(4) Timely suit
Paragraph (1) shall not apply to any credit or refund of any
overpayment attributable to a partnership item (or an item
affected by such partnership item) if a partner brings a timely
suit with respect to a timely administrative adjustment request
under section 6228 or a timely claim under subsection (c)
relating to such overpayment.
(5) Overpayments refunded without requirement that partner file
claim
In the case of any overpayment by a partner which is
attributable to a partnership item (or an affected item) and
which may be refunded under this subchapter, to the extent
practicable credit or refund of such overpayment shall be allowed
or made without any requirement that the partner file a claim
therefor.
(6) Subchapter B of chapter 66 not applicable
Subchapter B of chapter 66 (relating to limitations on credit
or refund) shall not apply to any credit or refund of an
overpayment attributable to a partnership item.
(e) Tax matters partner required to furnish names of partners to
Secretary
If the Secretary mails to any partnership the notice specified in
paragraph (1) of section 6223(a) with respect to any partnership
taxable year, the tax matters partner shall furnish to the
Secretary the name, address, profits interest, and taxpayer
identification number of each person who was a partner in such
partnership at any time during such taxable year. If the tax
matters partner later discovers that the information furnished to
the Secretary was incorrect or incomplete, the tax matters partner
shall furnish such revised or additional information as may be
necessary.
(f) Failure of tax matters partner, etc., to fulfill responsibility
does not affect applicability of proceeding
The failure of the tax matters partner, a pass-thru partner, the
representative of a notice group, or any other representative of a
partner to provide any notice or perform any act required under
this subchapter or under regulations prescribed under this
subchapter on behalf of such partner does not affect the
applicability of any proceeding or adjustment under this subchapter
to such partner.
(g) Date decision of court becomes final
For purposes of section 6229(d)(1) and section 6230(c)(2)(B), the
principles of section 7481(a) shall be applied in determining the
date on which a decision of a district court or the Court of
Federal Claims becomes final.
(h) Examination authority not limited
Nothing in this subchapter shall be construed as limiting the
authority granted to the Secretary under section 7602.
(i) Time and manner of filing statements, making elections, etc.
Except as otherwise provided in this subchapter, each -
(1) statement,
(2) election,
(3) request, and
(4) furnishing of information,
shall be filed or made at such time, in such manner, and at such
place as may be prescribed in regulations.
(j) Partnerships having principal place of business outside the
United States
For purposes of sections 6226 and 6228, a principal place of
business located outside the United States shall be treated as
located in the District of Columbia.
(k) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this subchapter. Any
reference in this subchapter to regulations is a reference to
regulations prescribed by the Secretary.
(l) Court rules
Any action brought under any provision of this subchapter shall
be conducted in accordance with such rules of practice and
procedure as may be prescribed by the Court in which the action is
brought.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 660; amended Pub. L. 98-369, div. A, title VII, Sec.
714(p)(2)(A), July 18, 1984, 98 Stat. 964; Pub. L. 99-514, title
XVIII, Sec. 1875(d)(2)(A), Oct. 22, 1986, 100 Stat. 2896; Pub. L.
100-647, title I, Sec. 1018(o)(1), Nov. 10, 1988, 102 Stat. 3584;
Pub. L. 102-572, title IX, Sec. 902(b)(2), Oct. 29, 1992, 106 Stat.
4516; Pub. L. 105-34, title XII, Secs. 1237(a)-(c)(1),
1238(b)(2)-(6), 1239(c)(1), Aug. 5, 1997, 111 Stat. 1025-1028; Pub.
L. 105-206, title III, Sec. 3201(e)(2), July 22, 1998, 112 Stat.
740.)
-MISC1-
AMENDMENTS
1998 - Subsec. (c)(5)(A). Pub. L. 105-206 substituted "section
6015" for "section 6013(e)".
1997 - Subsec. (a)(1). Pub. L. 105-34, Sec. 1237(c)(1),
substituted "paragraph (2) or (3)" for "paragraph (2)".
Subsec. (a)(2)(A)(i). Pub. L. 105-34, Sec. 1238(b)(2), amended
cl. (i) generally. Prior to amendment, cl. (i) read as follows:
"affected items which require partner level determinations, or".
Subsec. (a)(3). Pub. L. 105-34, Sec. 1237(a), added par. (3).
Subsec. (a)(3)(A). Pub. L. 105-34, Sec. 1238(b)(3)(A), inserted
"(including any liability for any penalties, additions to tax, or
additional amounts relating to such adjustment)" after "partnership
item".
Subsec. (a)(3)(B). Pub. L. 105-34, Sec. 1238(b)(3)(B), inserted
"(and the applicability of any penalties, additions to tax, or
additional amounts)" after "partnership items".
Subsec. (c)(1)(C). Pub. L. 105-34, Sec. 1238(b)(4), added subpar.
(C).
Subsec. (c)(2)(A). Pub. L. 105-34, Sec. 1238(b)(5), inserted "or
(C)" after "(1)(A)" in subpar. heading and substituted
"subparagraph (A) or (C) of paragraph (1)" for "paragraph (1)(A)"
in text.
Subsec. (c)(4). Pub. L. 105-34, Sec. 1238(b)(6), inserted at end
"In addition, the determination under the final partnership
administrative adjustment or under the decision of the court
(whichever is appropriate) concerning the applicability of any
penalty, addition to tax, or additional amount which relates to an
adjustment to a partnership item shall also be conclusive.
Notwithstanding the preceding sentence, the partner shall be
allowed to assert any partner level defenses that may apply or to
challenge the amount of the computational adjustment."
Subsec. (c)(5). Pub. L. 105-34, Sec. 1237(b), added par. (5).
Subsec. (c)(5)(A). Pub. L. 105-34, Sec. 1238(b)(3)(C), inserted
before period at end "(including any liability for any penalties,
additions to tax, or additional amounts relating to such
adjustment)".
Subsec. (c)(5)(D). Pub. L. 105-34, Sec. 1238(b)(3)(D), inserted
"(and the applicability of any penalties, additions to tax, or
additional amounts)" after "partnership items".
Subsec. (d)(6). Pub. L. 105-34, Sec. 1239(c)(1), struck out "(or
an affected item)" after "partnership item".
1992 - Subsec. (g). Pub. L. 102-572 substituted "Court of Federal
Claims" for "Claims Court".
1988 - Subsec. (a)(2)(A)(ii). Pub. L. 100-647 inserted "(other
than by reason of section 6231(b)(1)(C))" after "nonpartnership
items".
1986 - Subsec. (a). Pub. L. 99-514 substituted "Coordination with
deficiency proceedings" for "Normal deficiency proceedings do not
apply to computational adjustments" as subsec. heading, and amended
text generally. Prior to amendment text read as follows:
"Subchapter B of this chapter shall not apply to the assessment or
collection of any computational adjustment."
1984 - Subsec. (c)(1)(B). Pub. L. 98-369 struck out "(or
erroneously computed the amount of any such credit or refund)"
after "section 6228(a)".
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 applicable to any liability for tax
arising after July 22, 1998, and any liability for tax arising on
or before such date but remaining unpaid as of such date, see
section 3201(g)(1) of Pub. L. 105-206, set out as a note under
section 6015 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1237(d) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and section 6503 of
this title] shall take effect as if included in the amendments made
by section 402 of the Tax Equity and Fiscal Responsibility Act of
1982 [Pub. L. 97-248]."
Amendment by section 1238(b)(2)-(6) of Pub. L. 105-34 applicable
to partnership taxable years ending after Aug. 5, 1997, see section
1238(c) of Pub. L. 105-34, set out as a note under section 6221 of
this title.
Amendment by section 1239(c)(1) of Pub. L. 105-34 applicable to
partnership taxable years ending after Aug. 5, 1997, see section
1239(f) of Pub. L. 105-34, set out as a note under section 6225 of
this title.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section
911 of Pub. L. 102-572, set out as a note under section 171 of
Title 28, Judiciary and Judicial Procedure.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1875(d)(2)(C) of Pub. L. 99-514 provided that: "The
amendments made by this paragraph [amending this section and
sections 6213 and 6503 of this title] shall take effect as if
included in the Tax Equity and Fiscal Responsibility Act of 1982
[Pub. L. 97-248]."
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective as if included in the
provision of the Tax Equity and Fiscal Responsibility Act of 1982,
Pub. L. 97-248, to which such amendment relates, see section 715 of
Pub. L. 98-369, set out as a note under section 31 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6213, 6234, 6422, 6503,
6512, 6515, 7422 of this title.
-End-
-CITE-
26 USC Sec. 6231 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6231. Definitions and special rules
-STATUTE-
(a) Definitions
For purposes of this subchapter -
(1) Partnership
(A) In general
Except as provided in subparagraph (B), the term
"partnership" means any partnership required to file a return
under section 6031(a).
(B) Exception for small partnerships
(i) In general
The term "partnership" shall not include any partnership
having 10 or fewer partners each of whom is an individual
(other than a nonresident alien), a C corporation, or an
estate of a deceased partner. For purposes of the preceding
sentence, a husband and wife (and their estates) shall be
treated as 1 partner.
(ii) Election to have subchapter apply
A partnership (within the meaning of subparagraph (A)) may
for any taxable year elect to have clause (i) not apply. Such
election shall apply for such taxable year and all subsequent
taxable years unless revoked with the consent of the
Secretary.
(2) Partner
The term "partner" means -
(A) a partner in the partnership, and
(B) any other person whose income tax liability under
subtitle A is determined in whole or in part by taking into
account directly or indirectly partnership items of the
partnership.
(3) Partnership item
The term "partnership item" means, with respect to a
partnership, any item required to be taken into account for the
partnership's taxable year under any provision of subtitle A to
the extent regulations prescribed by the Secretary provide that,
for purposes of this subtitle, such item is more appropriately
determined at the partnership level than at the partner level.
(4) Nonpartnership item
The term "nonpartnership item" means an item which is (or is
treated as) not a partnership item.
(5) Affected item
The term "affected item" means any item to the extent such item
is affected by a partnership item.
(6) Computational adjustment
The term "computational adjustment" means the change in the tax
liability of a partner which properly reflects the treatment
under this subchapter of a partnership item. All adjustments
required to apply the results of a proceeding with respect to a
partnership under this subchapter to an indirect partner shall be
treated as computational adjustments.
(7) Tax matters partner
The tax matters partner of any partnership is -
(A) the general partner designated as the tax matters partner
as provided in regulations, or
(B) if there is no general partner who has been so
designated, the general partner having the largest profits
interest in the partnership at the close of the taxable year
involved (or, where there is more than 1 such partner, the 1 of
such partners whose name would appear first in an alphabetical
listing).
If there is no general partner designated under subparagraph (A)
and the Secretary determines that it is impracticable to apply
subparagraph (B), the partner selected by the Secretary shall be
treated as the tax matters partner. The Secretary shall, within
30 days of selecting a tax matters partner under the preceding
sentence, notify all partners required to receive notice under
section 6223(a) of the name and address of the person selected.
(8) Notice partner
The term "notice partner" means a partner who, at the time in
question, would be entitled to notice under subsection (a) of
section 6223 (determined without regard to subsections (b)(2) and
(e)(1)(B) thereof).
(9) Pass-thru partner
The term "pass-thru partner" means a partnership, estate,
trust, S corporation, nominee, or other similar person through
whom other persons hold an interest in the partnership with
respect to which proceedings under this subchapter are conducted.
(10) Indirect partner
The term "indirect partner" means a person holding an interest
in a partnership through 1 or more pass-thru partners.
(11) 5-percent group
A 5-percent group is a group of partners who for the
partnership taxable year involved had profits interests which
aggregated 5 percent or more.
(12) Husband and wife
Except to the extent otherwise provided in regulations, a
husband and wife who have a joint interest in a partnership shall
be treated as 1 person.
(b) Items cease to be partnership items in certain cases
(1) In general
For purposes of this subchapter, the partnership items of a
partner for a partnership taxable year shall become
nonpartnership items as of the date -
(A) the Secretary mails to such partner a notice that such
items shall be treated as nonpartnership items,
(B) the partner files suit under section 6228(b) after the
Secretary fails to allow an administrative adjustment request
with respect to any of such items,
(C) the Secretary or the Attorney General (or his delegate)
enters into a settlement agreement with the partner with
respect to such items, or
(D) such change occurs under subsection (e) of section 6223
(relating to effect of Secretary's failure to provide notice)
or under subsection (c) of this section.
(2) Circumstances in which notice is permitted
The Secretary may mail the notice referred to in subparagraph
(A) of paragraph (1) to a partner with respect to partnership
items for a partnership taxable year only if -
(A) such partner -
(i) has complied with subparagraph (B) of section
6222(b)(1) (relating to notification of inconsistent
treatment) with respect to one or more of such items, and
(ii) has not, as of the date on which the Secretary mails
the notice, filed a request for administrative adjustments
which would make the partner's treatment of the item or items
with respect to which the partner complied with subparagraph
(B) of section 6222(b)(1) consistent with the treatment of
such item or items on the partnership return, or
(B)(i) such partner has filed a request under section 6227(d)
for administrative adjustment of one or more of such items, and
(ii) the adjustments requested would not make such partner's
treatment of such items consistent with the treatment of such
items on the partnership return.
(3) Notice must be mailed before beginning of partnership
proceeding
Any notice to a partner under subparagraph (A) of paragraph (1)
with respect to partnership items for a partnership taxable year
shall be mailed before the day on which the Secretary mails to
the tax matters partner a notice of the beginning of an
administrative proceeding at the partnership level with respect
to such items.
(c) Regulations with respect to certain special enforcement areas
(1) Applicability of subsection
This subsection applies in the case of -
(A) assessments under section 6851 (relating to termination
assessments of income tax) or section 6861 (relating to
jeopardy assessments of income, estate, gift, and certain
excise taxes),
(B) criminal investigations,
(C) indirect methods of proof of income,
(D) foreign partnerships, and
(E) other areas that the Secretary determines by regulation
to present special enforcement considerations.
(2) Items may be treated as nonpartnership items
To the extent that the Secretary determines and provides by
regulations that to treat items as partnership items will
interfere with the effective and efficient enforcement of this
title in any case described in paragraph (1), such items shall be
treated as nonpartnership items for purposes of this subchapter.
(3) Special rules
The Secretary may prescribe by regulation such special rules as
the Secretary determines to be necessary to achieve the purposes
of this subchapter in any case described in paragraph (1).
(d) Time for determining partner's profits interest in partnership
(1) In general
For purposes of section 6223(b) (relating to special rules for
partnerships with more than 100 partners) and paragraph (11) of
subsection (a) (relating to 5-percent group), the interest of a
partner in the profits of a partnership for a partnership taxable
year shall be determined -
(A) in the case of a partner whose entire interest in the
partnership is disposed of during such partnership taxable
year, as of the moment immediately before such disposition, or
(B) in the case of any other partner, as of the close of the
partnership taxable year.
(2) Indirect partners
The Secretary shall prescribe regulations consistent with the
principles of paragraph (1) to be applied in the case of indirect
partners.
(e) Effect of judicial decisions in certain proceedings
(1) Determinations at partner level
No judicial determination with respect to the income tax
liability of any partner not conducted under this subchapter
shall be a bar to any adjustment in such partner's income tax
liability resulting from -
(A) a proceeding with respect to partnership items under this
subchapter, or
(B) a proceeding with respect to items which become
nonpartnership items -
(i) by reason of 1 or more of the events described in
subsection (b), and
(ii) after the appropriate time for including such items in
any other proceeding with respect to nonpartnership items.
(2) Proceedings under section 6228(a)
No judicial determination in any proceeding under subsection
(a) of section 6228 with respect to any partnership item shall be
a bar to any adjustment in any other partnership item.
(f) Special rule for deductions, losses, and credits of foreign
partnerships
Except to the extent otherwise provided in regulations, in the
case of any partnership the tax matters partner of which resides
outside the United States or the books of which are maintained
outside the United States, no deduction, loss, or credit shall be
allowable to any partner unless section 6031 is complied with for
the partnership's taxable year in which such deduction, loss, or
credit arose at such time as the Secretary prescribes by
regulations.
(g) Partnership return to be determinative of whether subchapter
applies
(1) Determination that subchapter applies
If, on the basis of a partnership return for a taxable year,
the Secretary reasonably determines that this subchapter applies
to such partnership for such year but such determination is
erroneous, then the provisions of this subchapter are hereby
extended to such partnership (and its items) for such taxable
year and to partners of such partnership.
(2) Determination that subchapter does not apply
If, on the basis of a partnership return for a taxable year,
the Secretary reasonably determines that this subchapter does not
apply to such partnership for such year but such determination is
erroneous, then the provisions of this subchapter shall not apply
to such partnership (and its items) for such taxable year or to
partners of such partnership.
-SOURCE-
(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96
Stat. 663; amended Pub. L. 98-369, div. A, title VII, Sec.
714(p)(2)(B)-(D), (I), July 18, 1984, 98 Stat. 964, 965; Pub. L.
105-34, title XI, Sec. 1141(b), title XII, Secs. 1232(a), 1234(a),
Aug. 5, 1997, 111 Stat. 981, 1023, 1024; Pub. L. 105-206, title
III, Sec. 3507(a), July 22, 1998, 112 Stat. 772; Pub. L. 107-147,
title IV, Secs. 416(d)(1)(C), 417(19)(C), Mar. 9, 2002, 116 Stat.
55, 57.)
-MISC1-
AMENDMENTS
2002 - Subsec. (b)(1)(C). Pub. L. 107-147, Sec. 416(d)(1)(C),
inserted "or the Attorney General (or his delegate)" after
"Secretary".
Subsec. (b)(2)(B)(i). Pub. L. 107-147, Sec. 417(19)(C),
substituted "section 6227(d)" for "section 6227(c)".
1998 - Subsec. (a)(7). Pub. L. 105-206 inserted at end "The
Secretary shall, within 30 days of selecting a tax matters partner
under the preceding sentence, notify all partners required to
receive notice under section 6223(a) of the name and address of the
person selected."
1997 - Subsec. (a)(1)(B)(i). Pub. L. 105-34, Sec. 1234(a),
reenacted heading of cl. (i) without change and amended text
generally. Prior to amendment, text read as follows: "The term
'partnership' shall not include any partnership if -
"(I) such partnership has 10 or fewer partners each of whom is
a natural person (other than a nonresident alien) or an estate,
and
"(II) each partner's share of each partnership item is the same
as his share of every other item.
For purposes of the preceding sentence, a husband and wife (and
their estates) shall be treated as 1 partner."
Subsec. (f). Pub. L. 105-34, Sec. 1141(b), substituted
"deductions, losses, and" for "losses and" in subsec. heading and
"deduction, loss, or" for "loss or" in two places in text.
Subsec. (g). Pub. L. 105-34, Sec. 1232(a), added subsec. (g).
1984 - Subsec. (a)(9). Pub. L. 98-369, Sec. 714(p)(2)(B),
substituted "S corporation" for "electing small business
corporation".
Subsec. (b)(2)(B). Pub. L. 98-369, Sec. 714(p)(2)(I), substituted
section "6227(c)" for "6227(b)".
Subsec. (d)(1)(A). Pub. L. 98-369, Sec. 714(p)(2)(C), amended
subpar. (A) generally, substituting "disposed of" and "disposition"
for "liquidated, sold, or exchanged" and "liquidation, sale, or
exchange", respectively.
Subsec. (f). Pub. L. 98-369, Sec. 714(p)(2)(D), substituted "such
loss or credit" for "such deduction or credit".
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by section 416(d)(1)(C) of Pub. L. 107-147 applicable
with respect to settlement agreements entered into after Mar. 9,
2002, see section 416(d)(2) of Pub. L. 107-147, set out as a note
under section 6224 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title III, Sec. 3507(b), July 22, 1998, 112
Stat. 772, provided that: "The amendment made by this section
[amending this section] shall apply to selections of tax matters
partners made by the Secretary of the Treasury after the date of
the enactment of this Act [July 22, 1998]."
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 1141(b) of Pub. L. 105-34 applicable to
taxable years beginning after Aug. 5, 1997, see section 1141(c) of
Pub. L. 105-34, set out as a note under section 6031 of this title.
Section 1232(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall apply to
partnership taxable years ending after the date of the enactment of
this Act [Aug. 5, 1997]."
Section 1234(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall apply to
partnership taxable years ending after the date of the enactment of
this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective as if included in the
provision of the Tax Equity and Fiscal Responsibility Act of 1982,
Pub. L. 97-248, to which such amendment relates, see section 715 of
Pub. L. 98-369, set out as a note under section 31 of this title.
SPECIAL RULE FOR CERTAIN INTERNATIONAL SATELLITE PARTNERSHIPS
Section 406 of Pub. L. 97-248, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that: "Subchapter C of
chapter 63 of the Internal Revenue Code of 1986 [formerly I.R.C.
1954] (relating to tax treatment of partnership items), section
6031 of such Code (relating to returns of partnership income), and
section 6046A of such Code (relating to returns as to interest in
foreign partnerships) shall not apply to the International
Telecommunications Satellite Organization, the International
Maritime Satellite Organization, and any organization which is a
successor of either of such organizations."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6226, 6227, 6228, 6229,
6230, 6234, 6255, 6501, 6511, 6512, 6601, 7422 of this title.
-End-
-CITE-
26 USC Sec. 6232 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
[Sec. 6232. Repealed. Pub. L. 100-418, title I, Sec. 1941(b)(1),
Aug. 23, 1988, 102 Stat. 1323]
-MISC1-
Section, added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3,
1982, 96 Stat. 666, related to extension of subchapter provisions,
respecting tax treatment of partnership items, to windfall profit
tax.
EFFECTIVE DATE OF REPEAL
Repeal applicable to crude oil removed from the premises on or
after Aug. 23, 1988, see section 1941(c) of Pub. L. 100-418, set
out as an Effective Date of 1988 Amendment note under section 164
of this title.
-End-
-CITE-
26 USC Sec. 6233 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6233. Extension to entities filing partnership returns, etc.
-STATUTE-
(a) General rule
If a partnership return is filed by an entity for a taxable year
but it is determined that the entity is not a partnership for such
year, then, to the extent provided in regulations, the provisions
of this subchapter are hereby extended in respect of such year to
such entity and its items and to persons holding an interest in
such entity.
(b) Similar rules in certain cases
If a partnership return is filed for any taxable year but it is
determined that there is no entity for such taxable year, to the
extent provided in regulations, rules similar to the rules of
subsection (a) shall apply.
-SOURCE-
(Added Pub. L. 98-369, div. A, title VII, Sec. 714(p)(1), July 18,
1984, 98 Stat. 964; amended Pub. L. 104-188, title I, Sec.
1307(c)(3)(B), Aug. 20, 1996, 110 Stat. 1782.)
-MISC1-
AMENDMENTS
1996 - Subsec. (b). Pub. L. 104-188 reenacted heading without
change and amended text generally. Prior to amendment, text read as
follows: "If for any taxable year -
"(1) an entity files a return as an S corporation but it is
determined that the entity was not an S corporation for such
year, or
"(2) a partnership return or S corporation return is filed but
it is determined that there is no entity for such taxable year,
then, to the extent provided in regulations, rules similar to the
rules of subsection (a) shall apply."
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 applicable to taxable years
beginning after Dec. 31, 1996, see section 1317(a) of Pub. L.
104-188, set out as a note under section 641 of this title.
EFFECTIVE DATE
Section effective as if included in the provision of the Tax
Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, to
which such amendment relates, see section 715 of Pub. L. 98-369,
set out as an Effective Date of 1984 Amendment note under section
31 of this title.
-End-
-CITE-
26 USC Sec. 6234 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter C - Tax Treatment of Partnership Items
-HEAD-
Sec. 6234. Declaratory judgment relating to treatment of items
other than partnership items with respect to an oversheltered
return
-STATUTE-
(a) General rule
If -
(1) a taxpayer files an oversheltered return for a taxable
year,
(2) the Secretary makes a determination with respect to the
treatment of items (other than partnership items) of such
taxpayer for such taxable year, and
(3) the adjustments resulting from such determination do not
give rise to a deficiency (as defined in section 6211) but would
give rise to a deficiency if there were no net loss from
partnership items,
the Secretary is authorized to send a notice of adjustment
reflecting such determination to the taxpayer by certified or
registered mail.
(b) Oversheltered return
For purposes of this section, the term "oversheltered return"
means an income tax return which -
(1) shows no taxable income for the taxable year, and
(2) shows a net loss from partnership items.
(c) Judicial review in the Tax Court
Within 90 days, or 150 days if the notice is addressed to a
person outside the United States, after the day on which the notice
of adjustment authorized in subsection (a) is mailed to the
taxpayer, the taxpayer may file a petition with the Tax Court for
redetermination of the adjustments. Upon the filing of such a
petition, the Tax Court shall have jurisdiction to make a
declaration with respect to all items (other than partnership items
and affected items which require partner level determinations as
described in section 6230(a)(2)(A)(i)) for the taxable year to
which the notice of adjustment relates, in accordance with the
principles of section 6214(a). Any such declaration shall have the
force and effect of a decision of the Tax Court and shall be
reviewable as such.
(d) Failure to file petition
(1) In general
Except as provided in paragraph (2), if the taxpayer does not
file a petition with the Tax Court within the time prescribed in
subsection (c), the determination of the Secretary set forth in
the notice of adjustment that was mailed to the taxpayer shall be
deemed to be correct.
(2) Exception
Paragraph (1) shall not apply after the date that the taxpayer
-
(A) files a petition with the Tax Court within the time
prescribed in subsection (c) with respect to a subsequent
notice of adjustment relating to the same taxable year, or
(B) files a claim for refund of an overpayment of tax under
section 6511 for the taxable year involved.
If a claim for refund is filed by the taxpayer, then solely for
purposes of determining (for the taxable year involved) the
amount of any computational adjustment in connection with a
partnership proceeding under this subchapter (other than under
this section) or the amount of any deficiency attributable to
affected items in a proceeding under section 6230(a)(2), the
items that are the subject of the notice of adjustment shall be
presumed to have been correctly reported on the taxpayer's return
during the pendency of the refund claim (and, if within the time
prescribed by section 6532 the taxpayer commences a civil action
for refund under section 7422, until the decision in the refund
action becomes final).
(e) Limitations period
(1) In general
Any notice to a taxpayer under subsection (a) shall be mailed
before the expiration of the period prescribed by section 6501
(relating to the period of limitations on assessment).
(2) Suspension when Secretary mails notice of adjustment
If the Secretary mails a notice of adjustment to the taxpayer
for a taxable year, the period of limitations on the making of
assessments shall be suspended for the period during which the
Secretary is prohibited from making the assessment (and, in any
event, if a proceeding in respect of the notice of adjustment is
placed on the docket of the Tax Court, until the decision of the
Tax Court becomes final), and for 60 days thereafter.
(3) Restrictions on assessment
Except as otherwise provided in section 6851, 6852, or 6861, no
assessment of a deficiency with respect to any tax imposed by
subtitle A attributable to any item (other than a partnership
item or any item affected by a partnership item) shall be made -
(A) until the expiration of the applicable 90-day or 150-day
period set forth in subsection (c) for filing a petition with
the Tax Court, or
(B) if a petition has been filed with the Tax Court, until
the decision of the Tax Court has become final.
(f) Further notices of adjustment restricted
If the Secretary mails a notice of adjustment to the taxpayer for
a taxable year and the taxpayer files a petition with the Tax Court
within the time prescribed in subsection (c), the Secretary may not
mail another such notice to the taxpayer with respect to the same
taxable year in the absence of a showing of fraud, malfeasance, or
misrepresentation of a material fact.
(g) Coordination with other proceedings under this subchapter
(1) In general
The treatment of any item that has been determined pursuant to
subsection (c) or (d) shall be taken into account in determining
the amount of any computational adjustment that is made in
connection with a partnership proceeding under this subchapter
(other than under this section), or the amount of any deficiency
attributable to affected items in a proceeding under section
6230(a)(2), for the taxable year involved. Notwithstanding any
other law or rule of law pertaining to the period of limitations
on the making of assessments, for purposes of the preceding
sentence, any adjustment made in accordance with this section
shall be taken into account regardless of whether any assessment
has been made with respect to such adjustment.
(2) Special rule in case of computational adjustment
In the case of a computational adjustment that is made in
connection with a partnership proceeding under this subchapter
(other than under this section), the provisions of paragraph (1)
shall apply only if the computational adjustment is made within
the period prescribed by section 6229 for assessing any tax under
subtitle A which is attributable to any partnership item or
affected item for the taxable year involved.
(3) Conversion to deficiency proceeding
If -
(A) after the notice referred to in subsection (a) is mailed
to a taxpayer for a taxable year but before the expiration of
the period for filing a petition with the Tax Court under
subsection (c) (or, if a petition is filed with the Tax Court,
before the Tax Court makes a declaration for that taxable
year), the treatment of any partnership item for the taxable
year is finally determined, or any such item ceases to be a
partnership item pursuant to section 6231(b), and
(B) as a result of that final determination or cessation, a
deficiency can be determined with respect to the items that are
the subject of the notice of adjustment,
the notice of adjustment shall be treated as a notice of
deficiency under section 6212 and any petition filed in respect
of the notice shall be treated as an action brought under section
6213.
(4) Finally determined
For purposes of this subsection, the treatment of partnership
items shall be treated as finally determined if -
(A) the Secretary or the Attorney General (or his delegate)
enters into a settlement agreement (within the meaning of
section 6224) with the taxpayer regarding such items,
(B) a notice of final partnership administrative adjustment
has been issued and -
(i) no petition has been filed under section 6226 and the
time for doing so has expired, or
(ii) a petition has been filed under section 6226 and the
decision of the court has become final, or
(C) the period within which any tax attributable to such
items may be assessed against the taxpayer has expired.
(h) Special rules if Secretary incorrectly determines applicable
procedure
(1) Special rule if Secretary erroneously mails notice of
adjustment
If the Secretary erroneously determines that subchapter B does
not apply to a taxable year of a taxpayer and consistent with
that determination timely mails a notice of adjustment to the
taxpayer pursuant to subsection (a) of this section, the notice
of adjustment shall be treated as a notice of deficiency under
section 6212 and any petition that is filed in respect of the
notice shall be treated as an action brought under section 6213.
(2) Special rule if Secretary erroneously mails notice of
deficiency
If the Secretary erroneously determines that subchapter B
applies to a taxable year of a taxpayer and consistent with that
determination timely mails a notice of deficiency to the taxpayer
pursuant to section 6212, the notice of deficiency shall be
treated as a notice of adjustment under subsection (a) and any
petition that is filed in respect of the notice shall be treated
as an action brought under subsection (c).
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1231(a), Aug. 5, 1997, 111
Stat. 1020; amended Pub. L. 107-147, title IV, Sec. 416(d)(1)(D),
Mar. 9, 2002, 116 Stat. 55.)
-MISC1-
AMENDMENTS
2002 - Subsec. (g)(4)(A). Pub. L. 107-147 inserted "or the
Attorney General (or his delegate)" after "Secretary".
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-147 applicable with respect to
settlement agreements entered into after Mar. 9, 2002, see section
416(d)(2) of Pub. L. 107-147, set out as a note under section 6224
of this title.
EFFECTIVE DATE
Section applicable to partnership taxable years ending after Aug.
5, 1997, see section 1231(d) of Pub. L. 105-34, set out as an
Effective Date of 1997 Amendment note under section 6211 of this
title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6501, 7459, 7482 of this
title.
-End-
-CITE-
26 USC Subchapter D - Treatment of Electing Large
Partnerships 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
-HEAD-
SUBCHAPTER D - TREATMENT OF ELECTING LARGE PARTNERSHIPS
-MISC1-
Part
I. Treatment of partnership items and adjustments.
II. Partnership level adjustments.
III. Definitions and special rules.
-End-
-CITE-
26 USC PART I - TREATMENT OF PARTNERSHIP ITEMS AND
ADJUSTMENTS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART I - TREATMENT OF PARTNERSHIP ITEMS AND ADJUSTMENTS
-HEAD-
PART I - TREATMENT OF PARTNERSHIP ITEMS AND ADJUSTMENTS
-MISC1-
Sec.
6240. Application of subchapter.
6241. Partner's return must be consistent with partnership
return.
6242. Procedures for taking partnership adjustments into
account.
PRIOR PROVISIONS
A prior subchapter D, Tax Treatment of Subchapter S Items,
consisted of sections 6241 to 6245, prior to repeal by Pub. L.
104-188, title I, Sec. 1307(c)(1), Aug. 20, 1996, 110 Stat. 1781.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in section 6012 of this title.
-End-
-CITE-
26 USC Sec. 6240 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART I - TREATMENT OF PARTNERSHIP ITEMS AND ADJUSTMENTS
-HEAD-
Sec. 6240. Application of subchapter
-STATUTE-
(a) General rule
This subchapter shall only apply to electing large partnerships
and partners in such partnerships.
(b) Coordination with other partnership audit procedures
(1) In general
Subchapter C of this chapter shall not apply to any electing
large partnership other than in its capacity as a partner in
another partnership which is not an electing large partnership.
(2) Treatment where partner in other partnership
If an electing large partnership is a partner in another
partnership which is not an electing large partnership -
(A) subchapter C of this chapter shall apply to items of such
electing large partnership which are partnership items with
respect to such other partnership, but
(B) any adjustment under such subchapter C shall be taken
into account in the manner provided by section 6242.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1009.)
-MISC1-
EFFECTIVE DATE
Subchapter applicable to partnership taxable years beginning
after Dec. 31, 1997, see section 1226 of Pub. L. 105-34, as
amended, set out as an Effective Date of 1997 Amendment note under
section 6011 of this title.
-End-
-CITE-
26 USC Sec. 6241 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART I - TREATMENT OF PARTNERSHIP ITEMS AND ADJUSTMENTS
-HEAD-
Sec. 6241. Partner's return must be consistent with partnership
return
-STATUTE-
(a) General rule
A partner of any electing large partnership shall, on the
partner's return, treat each partnership item attributable to such
partnership in a manner which is consistent with the treatment of
such partnership item on the partnership return.
(b) Underpayment due to inconsistent treatment assessed as math
error
Any underpayment of tax by a partner by reason of failing to
comply with the requirements of subsection (a) shall be assessed
and collected in the same manner as if such underpayment were on
account of a mathematical or clerical error appearing on the
partner's return. Paragraph (2) of section 6213(b) shall not apply
to any assessment of an underpayment referred to in the preceding
sentence.
(c) Adjustments not to affect prior year of partners
(1) In general
Except as provided in paragraph (2), subsections (a) and (b)
shall apply without regard to any adjustment to the partnership
item under part II.
(2) Certain changes in distributive share taken into account by
partner
(A) In general
To the extent that any adjustment under part II involves a
change under section 704 in a partner's distributive share of
the amount of any partnership item shown on the partnership
return, such adjustment shall be taken into account in applying
this title to such partner for the partner's taxable year for
which such item was required to be taken into account.
(B) Coordination with deficiency procedures
(i) In general
Subchapter B shall not apply to the assessment or
collection of any underpayment of tax attributable to an
adjustment referred to in subparagraph (A).
(ii) Adjustment not precluded
Notwithstanding any other law or rule of law, nothing in
subchapter B (or in any proceeding under subchapter B) shall
preclude the assessment or collection of any underpayment of
tax (or the allowance of any credit or refund of any
overpayment of tax) attributable to an adjustment referred to
in subparagraph (A) and such assessment or collection or
allowance (or any notice thereof) shall not preclude any
notice, proceeding, or determination under subchapter B.
(C) Period of limitations
The period for -
(i) assessing any underpayment of tax, or
(ii) filing a claim for credit or refund of any overpayment
of tax,
attributable to an adjustment referred to in subparagraph (A)
shall not expire before the close of the period prescribed by
section 6248 for making adjustments with respect to the
partnership taxable year involved.
(D) Tiered structures
If the partner referred to in subparagraph (A) is another
partnership or an S corporation, the rules of this paragraph
shall also apply to persons holding interests in such
partnership or S corporation (as the case may be); except that,
if such partner is an electing large partnership, the
adjustment referred to in subparagraph (A) shall be taken into
account in the manner provided by section 6242.
(d) Addition to tax for failure to comply with section
For addition to tax in case of partner's disregard of
requirements of this section, see part II of subchapter A of
chapter 68.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1009.)
-MISC1-
PRIOR PROVISIONS
A prior section 6241, added Pub. L. 97-354, Sec. 4(a), Oct. 19,
1982, 96 Stat. 1691, directed that tax treatment be determined at
the corporate level, prior to repeal by Pub. L. 104-188, title I,
Secs. 1307(c)(1), 1317(a), Aug. 20, 1996, 110 Stat. 1781, 1787,
applicable to taxable years beginning after Dec. 31, 1996.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6246 of this title.
-End-
-CITE-
26 USC Sec. 6242 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART I - TREATMENT OF PARTNERSHIP ITEMS AND ADJUSTMENTS
-HEAD-
Sec. 6242. Procedures for taking partnership adjustments into
account
-STATUTE-
(a) Adjustments flow through to partners for year in which
adjustment takes effect
(1) In general
If any partnership adjustment with respect to any partnership
item takes effect (within the meaning of subsection (d)(2))
during any partnership taxable year and if an election under
paragraph (2) does not apply to such adjustment, such adjustment
shall be taken into account in determining the amount of such
item for the partnership taxable year in which such adjustment
takes effect. In applying this title to any person who is
(directly or indirectly) a partner in such partnership during
such partnership taxable year, such adjustment shall be treated
as an item actually arising during such taxable year.
(2) Partnership liable in certain cases
If -
(A) a partnership elects under this paragraph to not take an
adjustment into account under paragraph (1),
(B) a partnership does not make such an election but in
filing its return for any partnership taxable year fails to
take fully into account any partnership adjustment as required
under paragraph (1), or
(C) any partnership adjustment involves a reduction in a
credit which exceeds the amount of such credit determined for
the partnership taxable year in which the adjustment takes
effect,
the partnership shall pay to the Secretary an amount determined
by applying the rules of subsection (b)(4) to the adjustments not
so taken into account and any excess referred to in subparagraph
(C).
(3) Offsetting adjustments taken into account
If a partnership adjustment requires another adjustment in a
taxable year after the adjusted year and before the partnership
taxable year in which such partnership adjustment takes effect,
such other adjustment shall be taken into account under this
subsection for the partnership taxable year in which such
partnership adjustment takes effect.
(4) Coordination with part II
Amounts taken into account under this subsection for any
partnership taxable year shall continue to be treated as
adjustments for the adjusted year for purposes of determining
whether such amounts may be readjusted under part II.
(b) Partnership liable for interest and penalties
(1) In general
If a partnership adjustment takes effect during any partnership
taxable year and such adjustment results in an imputed
underpayment for the adjusted year, the partnership -
(A) shall pay to the Secretary interest computed under
paragraph (2), and
(B) shall be liable for any penalty, addition to tax, or
additional amount as provided in paragraph (3).
(2) Determination of amount of interest
The interest computed under this paragraph with respect to any
partnership adjustment is the interest which would be determined
under chapter 67 -
(A) on the imputed underpayment determined under paragraph
(4) with respect to such adjustment,
(B) for the period beginning on the day after the return due
date for the adjusted year and ending on the return due date
for the partnership taxable year in which such adjustment takes
effect (or, if earlier, in the case of any adjustment to which
subsection (a)(2) applies, the date on which the payment under
subsection (a)(2) is made).
Proper adjustments in the amount determined under the preceding
sentence shall be made for adjustments required for partnership
taxable years after the adjusted year and before the year in
which the partnership adjustment takes effect by reason of such
partnership adjustment.
(3) Penalties
A partnership shall be liable for any penalty, addition to tax,
or additional amount for which it would have been liable if such
partnership had been an individual subject to tax under chapter 1
for the adjusted year and the imputed underpayment determined
under paragraph (4) were an actual underpayment (or
understatement) for such year.
(4) Imputed underpayment
For purposes of this subsection, the imputed underpayment
determined under this paragraph with respect to any partnership
adjustment is the underpayment (if any) which would result -
(A) by netting all adjustments to items of income, gain,
loss, or deduction and by treating any net increase in income
as an underpayment equal to the amount of such net increase
multiplied by the highest rate of tax in effect under section 1
or 11 for the adjusted year, and
(B) by taking adjustments to credits into account as
increases or decreases (whichever is appropriate) in the amount
of tax.
For purposes of the preceding sentence, any net decrease in a
loss shall be treated as an increase in income and a similar rule
shall apply to a net increase in a loss.
(c) Administrative provisions
(1) In general
Any payment required by subsection (a)(2) or (b)(1)(A) -
(A) shall be assessed and collected in the same manner as if
it were a tax imposed by subtitle C, and
(B) shall be paid on or before the return due date for the
partnership taxable year in which the partnership adjustment
takes effect.
(2) Interest
For purposes of determining interest, any payment required by
subsection (a)(2) or (b)(1)(A) shall be treated as an
underpayment of tax.
(3) Penalties
(A) In general
In the case of any failure by any partnership to pay on the
date prescribed therefor any amount required by subsection
(a)(2) or (b)(1)(A), there is hereby imposed on such
partnership a penalty of 10 percent of the underpayment. For
purposes of the preceding sentence, the term "underpayment"
means the excess of any payment required under this section
over the amount (if any) paid on or before the date prescribed
therefor.
(B) Accuracy-related and fraud penalties made applicable
For purposes of part II of subchapter A of chapter 68, any
payment required by subsection (a)(2) shall be treated as an
underpayment of tax.
(d) Definitions and special rules
For purposes of this section -
(1) Partnership adjustment
The term "partnership adjustment" means any adjustment in the
amount of any partnership item of an electing large partnership.
(2) When adjustment takes effect
A partnership adjustment takes effect -
(A) in the case of an adjustment pursuant to the decision of
a court in a proceeding brought under part II, when such
decision becomes final,
(B) in the case of an adjustment pursuant to any
administrative adjustment request under section 6251, when such
adjustment is allowed by the Secretary, or
(C) in any other case, when such adjustment is made.
(3) Adjusted year
The term "adjusted year" means the partnership taxable year to
which the item being adjusted relates.
(4) Return due date
The term "return due date" means, with respect to any taxable
year, the date prescribed for filing the partnership return for
such taxable year (determined without regard to extensions).
(5) Adjustments involving changes in character
Under regulations, appropriate adjustments in the application
of this section shall be made for purposes of taking into account
partnership adjustments which involve a change in the character
of any item of income, gain, loss, or deduction.
(e) Payments nondeductible
No deduction shall be allowed under subtitle A for any payment
required to be made by an electing large partnership under this
section.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1010.)
-MISC1-
PRIOR PROVISIONS
A prior section 6242, added Pub. L. 97-354, Sec. 4(a), Oct. 19,
1982, 96 Stat. 1691, directed that shareholder's return be
consistent with corporate return, prior to repeal by Pub. L.
104-188, title I, Secs. 1307(c)(1), 1317(a), Aug. 20, 1996, 110
Stat. 1781, 1787, applicable to taxable years beginning after Dec.
31, 1996.
A prior section 6243, added Pub. L. 97-354, Sec. 4(a), Oct. 19,
1982, 96 Stat. 1691, directed that shareholders be notified of
proceedings and given opportunity to participate, prior to repeal
by Pub. L. 104-188, title I, Secs. 1307(c)(1), 1317(a), Aug. 20,
1996, 110 Stat. 1781, 1787, applicable to taxable years beginning
after Dec. 31, 1996.
A prior section 6244, added Pub. L. 97-354, Sec. 4(a), Oct. 19,
1982, 96 Stat. 1691, directed that certain provisions of subchapter
C apply to subchapter S items, prior to repeal by Pub. L. 104-188,
title I, Secs. 1307(c)(1), 1317(a), Aug. 20, 1996, 110 Stat. 1781,
1787, applicable to taxable years beginning after Dec. 31, 1996.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6240, 6241, 6246, 6247,
6255 of this title.
-End-
-CITE-
26 USC PART II - PARTNERSHIP LEVEL ADJUSTMENTS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
-HEAD-
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
-MISC1-
Subpart
A. Adjustments by Secretary.
B. Claims for adjustments by partnership.
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in sections 6241, 6242 of this title.
-End-
-CITE-
26 USC Subpart A - Adjustments by Secretary 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart A - Adjustments by Secretary
-HEAD-
SUBPART A - ADJUSTMENTS BY SECRETARY
-MISC1-
Sec.
6245. Secretarial authority.
6246. Restrictions on partnership adjustments.
6247. Judicial review of partnership adjustment.
6248. Period of limitations for making adjustments.
-SECREF-
SUBPART REFERRED TO IN OTHER SECTIONS
This subpart is referred to in section 6252 of this title.
-End-
-CITE-
26 USC Sec. 6245 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart A - Adjustments by Secretary
-HEAD-
Sec. 6245. Secretarial authority
-STATUTE-
(a) General rule
The Secretary is authorized and directed to make adjustments at
the partnership level in any partnership item to the extent
necessary to have such item be treated in the manner required.
(b) Notice of partnership adjustment
(1) In general
If the Secretary determines that a partnership adjustment is
required, the Secretary is authorized to send notice of such
adjustment to the partnership by certified mail or registered
mail. Such notice shall be sufficient if mailed to the
partnership at its last known address even if the partnership has
terminated its existence.
(2) Further notices restricted
If the Secretary mails a notice of a partnership adjustment to
any partnership for any partnership taxable year and the
partnership files a petition under section 6247 with respect to
such notice, in the absence of a showing of fraud, malfeasance,
or misrepresentation of a material fact, the Secretary shall not
mail another such notice to such partnership with respect to such
taxable year.
(3) Authority to rescind notice with partnership consent
The Secretary may, with the consent of the partnership, rescind
any notice of a partnership adjustment mailed to such
partnership. Any notice so rescinded shall not be treated as a
notice of a partnership adjustment, for purposes of this section,
section 6246, and section 6247, and the taxpayer shall have no
right to bring a proceeding under section 6247 with respect to
such notice. Nothing in this subsection shall affect any
suspension of the running of any period of limitations during any
period during which the rescinded notice was outstanding.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1013.)
-MISC1-
PRIOR PROVISIONS
A prior section 6245, added Pub. L. 97-354, Sec. 4(a), Oct. 19,
1982, 96 Stat. 1692, defined "subchapter S item" for purposes of
subchapter, prior to repeal by Pub. L. 104-188, title I, Secs.
1307(c)(1), 1317(a), Aug. 20, 1996, 110 Stat. 1781, 1787,
applicable to taxable years beginning after Dec. 31, 1996.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6247 of this title.
-End-
-CITE-
26 USC Sec. 6246 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart A - Adjustments by Secretary
-HEAD-
Sec. 6246. Restrictions on partnership adjustments
-STATUTE-
(a) General rule
Except as otherwise provided in this chapter, no adjustment to
any partnership item may be made (and no levy or proceeding in any
court for the collection of any amount resulting from such
adjustment may be made, begun or prosecuted) before -
(1) the close of the 90th day after the day on which a notice
of a partnership adjustment was mailed to the partnership, and
(2) if a petition is filed under section 6247 with respect to
such notice, the decision of the court has become final.
(b) Premature action may be enjoined
Notwithstanding section 7421(a), any action which violates
subsection (a) may be enjoined in the proper court, including the
Tax Court. The Tax Court shall have no jurisdiction to enjoin any
action under this subsection unless a timely petition has been
filed under section 6247 and then only in respect of the
adjustments that are the subject of such petition.
(c) Exceptions to restrictions on adjustments
(1) Adjustments arising out of math or clerical errors
(A) In general
If the partnership is notified that, on account of a
mathematical or clerical error appearing on the partnership
return, an adjustment to a partnership item is required, rules
similar to the rules of paragraphs (1) and (2) of section
6213(b) shall apply to such adjustment.
(B) Special rule
If an electing large partnership is a partner in another
electing large partnership, any adjustment on account of such
partnership's failure to comply with the requirements of
section 6241(a) with respect to its interest in such other
partnership shall be treated as an adjustment referred to in
subparagraph (A), except that paragraph (2) of section 6213(b)
shall not apply to such adjustment.
(2) Partnership may waive restrictions
The partnership shall at any time (whether or not a notice of
partnership adjustment has been issued) have the right, by a
signed notice in writing filed with the Secretary, to waive the
restrictions provided in subsection (a) on the making of any
partnership adjustment.
(d) Limit where no proceeding begun
If no proceeding under section 6247 is begun with respect to any
notice of a partnership adjustment during the 90-day period
described in subsection (a), the amount for which the partnership
is liable under section 6242 (and any increase in any partner's
liability for tax under chapter 1 by reason of any adjustment under
section 6242(a)) shall not exceed the amount determined in
accordance with such notice.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1013.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6245, 6255, 7421 of this
title.
-End-
-CITE-
26 USC Sec. 6247 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart A - Adjustments by Secretary
-HEAD-
Sec. 6247. Judicial review of partnership adjustment
-STATUTE-
(a) General rule
Within 90 days after the date on which a notice of a partnership
adjustment is mailed to the partnership with respect to any
partnership taxable year, the partnership may file a petition for a
readjustment of the partnership items for such taxable year with -
(1) the Tax Court,
(2) the district court of the United States for the district in
which the partnership's principal place of business is located,
or
(3) the Claims Court.
(b) Jurisdictional requirement for bringing action in district
court or Claims Court
(1) In general
A readjustment petition under this section may be filed in a
district court of the United States or the Claims Court only if
the partnership filing the petition deposits with the Secretary,
on or before the date the petition is filed, the amount for which
the partnership would be liable under section 6242(b) (as of the
date of the filing of the petition) if the partnership items were
adjusted as provided by the notice of partnership adjustment. The
court may by order provide that the jurisdictional requirements
of this paragraph are satisfied where there has been a good faith
attempt to satisfy such requirement and any shortfall of the
amount required to be deposited is timely corrected.
(2) Interest payable
Any amount deposited under paragraph (1), while deposited,
shall not be treated as a payment of tax for purposes of this
title (other than chapter 67).
(c) Scope of judicial review
A court with which a petition is filed in accordance with this
section shall have jurisdiction to determine all partnership items
of the partnership for the partnership taxable year to which the
notice of partnership adjustment relates and the proper allocation
of such items among the partners (and the applicability of any
penalty, addition to tax, or additional amount for which the
partnership may be liable under section 6242(b)).
(d) Determination of court reviewable
Any determination by a court under this section shall have the
force and effect of a decision of the Tax Court or a final judgment
or decree of the district court or the Claims Court, as the case
may be, and shall be reviewable as such. The date of any such
determination shall be treated as being the date of the court's
order entering the decision.
(e) Effect of decision dismissing action
If an action brought under this section is dismissed other than
by reason of a rescission under section 6245(b)(3), the decision of
the court dismissing the action shall be considered as its decision
that the notice of partnership adjustment is correct, and an
appropriate order shall be entered in the records of the court.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1014.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6245, 6246, 6248, 6252,
6255, 7459, 7482, 7485 of this title.
-End-
-CITE-
26 USC Sec. 6248 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart A - Adjustments by Secretary
-HEAD-
Sec. 6248. Period of limitations for making adjustments
-STATUTE-
(a) General rule
Except as otherwise provided in this section, no adjustment under
this subpart to any partnership item for any partnership taxable
year may be made after the date which is 3 years after the later of
-
(1) the date on which the partnership return for such taxable
year was filed, or
(2) the last day for filing such return for such year
(determined without regard to extensions).
(b) Extension by agreement
The period described in subsection (a) (including an extension
period under this subsection) may be extended by an agreement
entered into by the Secretary and the partnership before the
expiration of such period.
(c) Special rule in case of fraud, etc.
(1) False return
In the case of a false or fraudulent partnership return with
intent to evade tax, the adjustment may be made at any time.
(2) Substantial omission of income
If any partnership omits from gross income an amount properly
includible therein which is in excess of 25 percent of the amount
of gross income stated in its return, subsection (a) shall be
applied by substituting "6 years" for "3 years".
(3) No return
In the case of a failure by a partnership to file a return for
any taxable year, the adjustment may be made at any time.
(4) Return filed by Secretary
For purposes of this section, a return executed by the
Secretary under subsection (b) of section 6020 on behalf of the
partnership shall not be treated as a return of the partnership.
(d) Suspension when Secretary mails notice of adjustment
If notice of a partnership adjustment with respect to any taxable
year is mailed to the partnership, the running of the period
specified in subsection (a) (as modified by the other provisions of
this section) shall be suspended -
(1) for the period during which an action may be brought under
section 6247 (and, if a petition is filed under section 6247 with
respect to such notice, until the decision of the court becomes
final), and
(2) for 1 year thereafter.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1015.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6241, 6251, 6252 of this
title.
-End-
-CITE-
26 USC Subpart B - Claims for Adjustments by Partnership 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart B - Claims for Adjustments by Partnership
-HEAD-
SUBPART B - CLAIMS FOR ADJUSTMENTS BY PARTNERSHIP
-MISC1-
Sec.
6251. Administrative adjustment requests.
6252. Judicial review where administrative adjustment
request is not allowed in full.
-End-
-CITE-
26 USC Sec. 6251 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart B - Claims for Adjustments by Partnership
-HEAD-
Sec. 6251. Administrative adjustment requests
-STATUTE-
(a) General rule
A partnership may file a request for an administrative adjustment
of partnership items for any partnership taxable year at any time
which is -
(1) within 3 years after the later of -
(A) the date on which the partnership return for such year is
filed, or
(B) the last day for filing the partnership return for such
year (determined without regard to extensions), and
(2) before the mailing to the partnership of a notice of a
partnership adjustment with respect to such taxable year.
(b) Secretarial action
If a partnership files an administrative adjustment request under
subsection (a), the Secretary may allow any part of the requested
adjustments.
(c) Special rule in case of extension under section 6248
If the period described in section 6248(a) is extended pursuant
to an agreement under section 6248(b), the period prescribed by
subsection (a)(1) shall not expire before the date 6 months after
the expiration of the extension under section 6248(b).
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1016.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6242, 6252 of this title.
-End-
-CITE-
26 USC Sec. 6252 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART II - PARTNERSHIP LEVEL ADJUSTMENTS
Subpart B - Claims for Adjustments by Partnership
-HEAD-
Sec. 6252. Judicial review where administrative adjustment request
is not allowed in full
-STATUTE-
(a) In general
If any part of an administrative adjustment request filed under
section 6251 is not allowed by the Secretary, the partnership may
file a petition for an adjustment with respect to the partnership
items to which such part of the request relates with -
(1) the Tax Court,
(2) the district court of the United States for the district in
which the principal place of business of the partnership is
located, or
(3) the Claims Court.
(b) Period for filing petition
A petition may be filed under subsection (a) with respect to
partnership items for a partnership taxable year only -
(1) after the expiration of 6 months from the date of filing of
the request under section 6251, and
(2) before the date which is 2 years after the date of such
request.
The 2-year period set forth in paragraph (2) shall be extended for
such period as may be agreed upon in writing by the partnership and
the Secretary.
(c) Coordination with subpart A
(1) Notice of partnership adjustment before filing of petition
No petition may be filed under this section after the Secretary
mails to the partnership a notice of a partnership adjustment for
the partnership taxable year to which the request under section
6251 relates.
(2) Notice of partnership adjustment after filing but before
hearing of petition
If the Secretary mails to the partnership a notice of a
partnership adjustment for the partnership taxable year to which
the request under section 6251 relates after the filing of a
petition under this subsection but before the hearing of such
petition, such petition shall be treated as an action brought
under section 6247 with respect to such notice, except that
subsection (b) of section 6247 shall not apply.
(3) Notice must be before expiration of statute of limitations
A notice of a partnership adjustment for the partnership
taxable year shall be taken into account under paragraphs (1) and
(2) only if such notice is mailed before the expiration of the
period prescribed by section 6248 for making adjustments to
partnership items for such taxable year.
(d) Scope of judicial review
Except in the case described in paragraph (2) of subsection (c),
a court with which a petition is filed in accordance with this
section shall have jurisdiction to determine only those partnership
items to which the part of the request under section 6251 not
allowed by the Secretary relates and those items with respect to
which the Secretary asserts adjustments as offsets to the
adjustments requested by the partnership.
(e) Determination of court reviewable
Any determination by a court under this section shall have the
force and effect of a decision of the Tax Court or a final judgment
or decree of the district court or the Claims Court, as the case
may be, and shall be reviewable as such. The date of any such
determination shall be treated as being the date of the court's
order entering the decision.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1016.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6255, 7459, 7482, 7485 of
this title.
-End-
-CITE-
26 USC PART III - DEFINITIONS AND SPECIAL RULES 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART III - DEFINITIONS AND SPECIAL RULES
-HEAD-
PART III - DEFINITIONS AND SPECIAL RULES
-MISC1-
Sec.
6255. Definitions and special rules.
-End-
-CITE-
26 USC Sec. 6255 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter D - Treatment of Electing Large Partnerships
PART III - DEFINITIONS AND SPECIAL RULES
-HEAD-
Sec. 6255. Definitions and special rules
-STATUTE-
(a) Definitions
For purposes of this subchapter -
(1) Electing large partnership
The term "electing large partnership" has the meaning given to
such term by section 775.
(2) Partnership item
The term "partnership item" has the meaning given to such term
by section 6231(a)(3).
(b) Partners bound by actions of partnership, etc.
(1) Designation of partner
Each electing large partnership shall designate (in the manner
prescribed by the Secretary) a partner (or other person) who
shall have the sole authority to act on behalf of such
partnership under this subchapter. In any case in which such a
designation is not in effect, the Secretary may select any
partner as the partner with such authority.
(2) Binding effect
An electing large partnership and all partners of such
partnership shall be bound -
(A) by actions taken under this subchapter by the
partnership, and
(B) by any decision in a proceeding brought under this
subchapter.
(c) Partnerships having principal place of business outside the
United States
For purposes of sections 6247 and 6252, a principal place of
business located outside the United States shall be treated as
located in the District of Columbia.
(d) Treatment where partnership ceases to exist
If a partnership ceases to exist before a partnership adjustment
under this subchapter takes effect, such adjustment shall be taken
into account by the former partners of such partnership under
regulations prescribed by the Secretary.
(e) Date decision becomes final
For purposes of this subchapter, the principles of section
7481(a) shall be applied in determining the date on which a
decision of a district court or the Claims Court becomes final.
(f) Partnerships in cases under title 11 of the United States Code
(1) Suspension of period of limitations on making adjustment,
assessment, or collection
The running of any period of limitations provided in this
subchapter on making a partnership adjustment (or provided by
section 6501 or 6502 on the assessment or collection of any
amount required to be paid under section 6242) shall, in a case
under title 11 of the United States Code, be suspended during the
period during which the Secretary is prohibited by reason of such
case from making the adjustment (or assessment or collection) and
-
(A) for adjustment or assessment, 60 days thereafter, and
(B) for collection, 6 months thereafter.
A rule similar to the rule of section 6213(f)(2) shall apply for
purposes of section 6246.
(2) Suspension of period of limitation for filing for judicial
review
The running of the period specified in section 6247(a) or
6252(b) shall, in a case under title 11 of the United States
Code, be suspended during the period during which the partnership
is prohibited by reason of such case from filing a petition under
section 6247 or 6252 and for 60 days thereafter.
(g) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the provisions of this subchapter, including
regulations -
(1) to prevent abuse through manipulation of the provisions of
this subchapter, and
(2) providing that this subchapter shall not apply to any case
described in section 6231(c)(1) (or the regulations prescribed
thereunder) where the application of this subchapter to such a
case would interfere with the effective and efficient enforcement
of this title.
In any case to which this subchapter does not apply by reason of
paragraph (2), rules similar to the rules of sections 6229(f) and
6255(f) shall apply.
-SOURCE-
(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111
Stat. 1017.)
-End-
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