
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: 26USC6228]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 63--ASSESSMENT
 
            Subchapter C--Tax Treatment of Partnership Items
 
Sec. 6228. Judicial review where administrative adjustment 
        request is not allowed in full
        

(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 (b) \1\ 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--
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    \1\ See References in Text note below.
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            (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 subsection (b) \1\ of 
        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 (c) \1\ 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 (c) \1\ 
        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).

(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.)

                       References in Text

    Subsections (b) and (c) of section 6227 of this title, referred to 
in subsecs. (a)(1), (3)(A) and (b)(1), (2)(A), were redesignated 
subsecs. (c) and (d), respectively, of section 6227 of this title and a 
new subsec. (b) was added by Pub. L. 105-34, title XII, Sec. 1236(a), 
Aug. 5, 1997, 111 Stat. 1025.


                               Amendments

    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.

                  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.
