Collapse to view only § 6223. Partners bound by actions of partnership
- § 6221. Determination at partnership level
- § 6222. Partner’s return must be consistent with partnership return
- § 6223. Partners bound by actions of partnership
§ 6221. Determination at partnership level
(a) In general
(b) Election out for certain partnerships with 100 or fewer partners, etc.
(1) In generalThis subchapter shall not apply with respect to any partnership for any taxable year if—
(A) the partnership elects the application of this subsection for such taxable year,
(B) for such taxable year the partnership is required to furnish 100 or fewer statements under section 6031(b) with respect to its partners,
(C) each of the partners of such partnership is an individual, a C corporation, any foreign entity that would be treated as a C corporation were it domestic, an S corporation, or an estate of a deceased partner,
(D) the election—
(i) is made with a timely filed return for such taxable year, and
(ii) includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each partner of such partnership, and
(E) the partnership notifies each such partner of such election in the manner prescribed by the Secretary.
(2) Special rules relating to certain partners
(A) S corporation partnersIn the case of a partner that is an S corporation—
(i) the partnership shall only be treated as meeting the requirements of paragraph (1)(C) with respect to such partner if such partnership includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each person with respect to whom such S corporation is required to furnish a statement under section 6037(b) for the taxable year of the S corporation ending with or within the partnership taxable year for which the application of this subsection is elected, and
(ii) the statements such S corporation is required to so furnish shall be treated as statements furnished by the partnership for purposes of paragraph (1)(B).
(B) Foreign partners
(C) Other partners
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 625; amended Pub. L. 115–141, div. U, title II, § 201(c)(2), Mar. 23, 2018, 132 Stat. 1173.)
§ 6222. Partner’s return must be consistent with partnership return
(a) In general
(b) Underpayment due to inconsistent treatment assessed as math error
(c) Exception for notification of inconsistent treatment
(1) In general
In the case of any item referred to in subsection (a), if—
(A)
(i) the partnership has filed a return but the partner’s treatment on the partner’s 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,
subsections (a) and (b) 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 an item if the partner—
(A) demonstrates to the satisfaction of the Secretary that the treatment of the item on the partner’s return is consistent with the treatment of the item on the statement furnished to the partner by the partnership, and
(B) elects to have this paragraph apply with respect to that item.
(d) Final decision on certain positions not binding on partnership
(e) Addition to tax for failure to comply with section
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 626; amended Pub. L. 115–141, div. U, title II, § 201(c)(3), Mar. 23, 2018, 132 Stat. 1173.)
§ 6223. Partners bound by actions of partnership
(a) Designation of partnership representative
(b) Binding effect
A partnership and all partners of such partnership shall be bound—
(1) by actions taken under this subchapter by the partnership, and
(2) by any final decision in a proceeding brought under this subchapter with respect to the partnership.
(Added Pub. L. 114–74, title XI, § 1101(c)(1), Nov. 2, 2015, 129 Stat. 627.)