Collapse to view only § 6235. Period of limitations on making adjustments
- § 6231. Notice of proceedings and adjustment
- § 6232. Assessment, collection, and payment
- § 6233. Interest and penalties
- § 6234. Judicial review of partnership adjustment
- § 6235. Period of limitations on making adjustments
§ 6231. Notice of proceedings and adjustment
(a) In general
The Secretary shall mail to the partnership and the partnership representative—
(1) notice of any administrative proceeding initiated at the partnership level with respect to an adjustment of any partnership-related item for any partnership taxable year, or any partner’s distributive share thereof,
(2) notice of any proposed partnership adjustment resulting from such proceeding, and
(3) notice of any final partnership adjustment resulting from such proceeding.
Any notice of a final partnership adjustment shall be sufficient if mailed to the last known address of the partnership representative or the partnership (even if the partnership has terminated its existence). The first sentence shall apply to any proceeding with respect to an administrative adjustment request filed by a partnership under section 6227.
(b) Timing of notices
(1) Notice of proposed partnership adjustment
(2) Notice of final partnership adjustment
(A) In general
(B) Statute of limitations on adjustment
(c) Further notices restricted
(d) Authority to rescind notice with partnership consent
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 632; amended Pub. L. 115–141, div. U, title II, §§ 201(c)(6), 206(h), Mar. 23, 2018, 132 Stat. 1173, 1179.)
§ 6232. Assessment, collection, and payment
(a) In general
Any imputed underpayment shall be assessed and collected in the same manner as if it were a tax imposed for the adjustment year by subtitle A, except that—
(1) subchapter B of chapter 63 shall not apply, and
(2) in the case of an administrative adjustment request to which section 6227(b)(1) applies, the underpayment shall be paid and may be assessed when the request is filed.
(b) Limitation on assessment
Except as otherwise provided in this subtitle (other than subchapter B of this chapter), no assessment of an imputed underpayment 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 final partnership adjustment was mailed, and
(2) if a petition is filed under section 6234 with respect to such notice, the decision of the court has become final.
The preceding sentence shall not apply in the case of a specified similar amount (as defined in subsection (f)(2)).
(c) Premature action may be enjoined
(d) Exceptions to restrictions on adjustments
(1) Adjustments arising out of math or clerical errors
(A) In general
(B) Special rule
(2) Partnership may waive restrictions
(e) Limit where no proceeding begun
(f) Failure to pay imputed underpayment
(1) In general
If any amount of any imputed underpayment to which section 6225 applies or any specified similar amount (or any interest or penalties with respect to any such amount) has not been paid by the date which is 10 days after the date on which the Secretary provides notice and demand for such payment—
(A) section 6621(a)(2)(B) shall be applied by substituting “5 percentage points” for “3 percentage points” with respect to such amount, and
(B) the Secretary may assess upon each partner of the partnership (determined as of the close of the adjustment year or, if the partnership has ceased to exist as of such time, the former partners of the partnership as determined for purposes of section 6241(7)) a tax equal to such partner’s proportionate share of such amount (including any such interest or penalties, determined after application of subparagraph (A)).
(2) Specified similar amount
For purposes of this subsection, the term “specified similar amount” means—
(A) the amount described in subclause (II) of section 6226(b)(4)(A)(ii) (including any failure to satisfy the requirement of subclause (I) of such section which is treated as a failure to pay such amount under section 6651(i)), and
(B) any amount assessed under paragraph (1)(B) upon a partner which is a partnership.
(3) Proportionate share
(4) Coordination with partnership liability
(5) S corporations
(6) Rules related to assessment and collection
(A) Deficiency procedures not applicable
(B) Limitation on assessment
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 632; amended Pub. L. 115–141, div. U, title II, §§ 205(a), 206(g), (p)(4)–(6), Mar. 23, 2018, 132 Stat. 1177, 1179, 1182.)
§ 6233. Interest and penalties
(a) Interest and penalties determined from reviewed year
(1) In general
Except to the extent provided in section 6226(c), in the case of a partnership adjustment for a reviewed year—
(A) interest shall be computed under paragraph (2), and
(B) the partnership shall be liable for any penalty, addition to tax, or additional amount as provided in paragraph (3).
(2) Determination of amount of interest
(3) Penalties
(b) Interest and penalties with respect to adjustment year return
(1) In general
In the case of any failure to pay an imputed underpayment on the date prescribed therefor, the partnership shall be liable—
(A) for interest as determined under paragraph (2), and
(B) for any penalty, addition to tax, or additional amount as determined under paragraph (3).
(2) Interest
(3) Penalties
Penalties, additions to tax, or additional amounts determined under this paragraph are the penalties, additions to tax, or additional amounts that would be determined—
(A) by applying section 6651(a)(2) to such failure to pay, and
(B) by treating the imputed underpayment as an underpayment of tax for purposes of part II of subchapter A of chapter 68.
(c) Deposit to suspend interest
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 633; amended Pub. L. 115–141, div. U, title II, § 206(i), Mar. 23, 2018, 132 Stat. 1180.)
§ 6234. Judicial review of partnership adjustment
(a) In general
Within 90 days after the date on which a notice of a final partnership adjustment is mailed under section 6231 with respect to any partnership taxable year, the partnership may file a petition for a readjustment 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) Jurisdictional requirement for bringing action in district court or Court of Federal Claims
(1) In general
(2) Interest payable
(c) Scope of judicial review
(d) Determination of court reviewable
(e) Effect of decision dismissing action
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 634; amended Pub. L. 114–113, div. Q, title IV, § 411(b)(2), (3), Dec. 18, 2015, 129 Stat. 3122; Pub. L. 115–141, div. U, title II, §§ 201(c)(7), 206(j), Mar. 23, 2018, 132 Stat. 1173, 1180.)
§ 6235. Period of limitations on making adjustments
(a) In generalExcept as otherwise provided in this section or section 905(c), no adjustment under this subchapter for any partnership taxable year may be made after the later of—
(1) the date which is 3 years after the latest of—
(A) the date on which the partnership return for such taxable year was filed,
(B) the return due date for the taxable year, or
(C) the date on which the partnership filed an administrative adjustment request with respect to such year under section 6227, or
(2) in the case of any modification of an imputed underpayment under section 6225(c), the date that is 270 days (plus the number of days of any extension consented to by the Secretary under paragraph (7) thereof) after the date on which everything required to be submitted to the Secretary pursuant to such section is so submitted, or
(3) in the case of any notice of a proposed partnership adjustment under section 6231(a)(2), the date that is 330 days (plus the number of days of any extension consented to by the Secretary under section 6225(c)(7)) after the date of such notice.
(b) Extension by agreement
(c) Special rule in case of fraud, etc.
(1) False return
(2) Substantial omission of income
(3) No return
(4) Return filed by Secretary
(5) Information required to be reported
(6) Listed transactions
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 635; amended Pub. L. 114–113, div. Q, title IV, § 411(c), Dec. 18, 2015, 129 Stat. 3122; Pub. L. 115–141, div. U, title II, § 206(k), Mar. 23, 2018, 132 Stat. 1180.)