
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6227]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 63--ASSESSMENT
 
            Subchapter C--Tax Treatment of Partnership Items
 
Sec. 6227. Administrative adjustment requests


(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 (b)), 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).

(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.)


                               Amendments

    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.''

                  Section Referred to in Other Sections

    This section is referred to in sections 6228, 6230, 6231, 6422, 6515 
of this title.
