
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6224]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 63--ASSESSMENT
 
            Subchapter C--Tax Treatment of Partnership Items
 
Sec. 6224. Participation in administrative proceedings; waivers; 
        agreements
        

(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 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 enters into a settlement agreement with any 
    partner with respect to partnership items for any partnership 
    taxable year, the Secretary 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.

(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96 Stat. 
651.)

                  Section Referred to in Other Sections

    This section is referred to in sections 6223, 6234, 6601 of this 
title.
