
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: 26USC6229]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 63--ASSESSMENT
 
            Subchapter C--Tax Treatment of Partnership Items
 
Sec. 6229. Period of limitations for making assessments


(a) General rule

    Except as otherwise provided in this section, the period for 
assessing any tax imposed by subtitle A with respect to any person which 
is attributable to any partnership item (or affected item) for a 
partnership taxable year shall not expire before the date which is 3 
years after the later of--
        (1) the date on which the partnership return for such taxable 
    year was filed, or
        (2) the last day for filing such return for such year 
    (determined without regard to extensions).

(b) Extension by agreement

                           (1) In general

        The period described in subsection (a) (including an extension 
    period under this subsection) may be extended--
            (A) with respect to any partner, by an agreement entered 
        into by the Secretary and such partner, and
            (B) with respect to all partners, by an agreement entered 
        into by the Secretary and the tax matters partner (or any other 
        person authorized by the partnership in writing to enter into 
        such an agreement),

    before the expiration of such period.

     (2) Special rule with respect to debtors in title 11 cases

        Notwithstanding any other law or rule of law, if an agreement is 
    entered into under paragraph (1)(B) and the agreement is signed by a 
    person who would be the tax matters partner but for the fact that, 
    at the time that the agreement is executed, the person is a debtor 
    in a bankruptcy proceeding under title 11 of the United States Code, 
    such agreement shall be binding on all partners in the partnership 
    unless the Secretary has been notified of the bankruptcy proceeding 
    in accordance with regulations prescribed by the Secretary.

              (3) Coordination with section 6501(c)(4)

        Any agreement under section 6501(c)(4) shall apply with respect 
    to the period described in subsection (a) only if the agreement 
    expressly provides that such agreement applies to tax attributable 
    to partnership items.

(c) Special rule in case of fraud, etc.

                          (1) False return

        If any partner has, with the intent to evade tax, signed or 
    participated directly or indirectly in the preparation of a 
    partnership return which includes a false or fraudulent item--
            (A) in the case of partners so signing or participating in 
        the preparation of the return, any tax imposed by subtitle A 
        which is attributable to any partnership item (or affected item) 
        for the partnership taxable year to which the return relates may 
        be assessed at any time, and
            (B) in the case of all other partners, subsection (a) shall 
        be applied with respect to such return by substituting ``6 
        years'' for ``3 years''.

                 (2) Substantial omission of income

        If any partnership omits from gross income an amount properly 
    includible therein which is in excess of 25 percent of the amount of 
    gross income stated in its return, subsection (a) shall be applied 
    by substituting ``6 years'' for ``3 years''.

                            (3) No return

        In the case of a failure by a partnership to file a return for 
    any taxable year, any tax attributable to a partnership item (or 
    affected item) arising in such year may be assessed at any time.

                    (4) Return filed by Secretary

        For purposes of this section, a return executed by the Secretary 
    under subsection (b) of section 6020 on behalf of the partnership 
    shall not be treated as a return of the partnership.

(d) Suspension when Secretary makes administrative adjustment

    If notice of a final partnership administrative adjustment with 
respect to any taxable year is mailed to the tax matters partner, the 
running of the period specified in subsection (a) (as modified by other 
provisions of this section) shall be suspended--
        (1) for the period during which an action may be brought under 
    section 6226 (and, if a petition is filed under section 6226 with 
    respect to such administrative adjustment, until the decision of the 
    court becomes final), and
        (2) for 1 year thereafter.

(e) Unidentified partner

    If--
        (1) the name, address, and taxpayer identification number of a 
    partner are not furnished on the partnership return for a 
    partnership taxable year, and
        (2)(A) the Secretary, before the expiration of the period 
    otherwise provided under this section with respect to such partner, 
    mails to the tax matters partner the notice specified in paragraph 
    (2) of section 6223(a) with respect to such taxable year, or
        (B) the partner has failed to comply with subsection (b) of 
    section 6222 (relating to notification of inconsistent treatment) 
    with respect to any partnership item for such taxable year,

the period for assessing any tax imposed by subtitle A which is 
attributable to any partnership item (or affected item) for such taxable 
year shall not expire with respect to such partner before the date which 
is 1 year after the date on which the name, address, and taxpayer 
identification number of such partner are furnished to the Secretary.

(f) Special rules

               (1) Items becoming nonpartnership items

        If before the expiration of the period otherwise provided in 
    this section for assessing any tax imposed by subtitle A with 
    respect to the partnership items of a partner for the partnership 
    taxable year, such items become nonpartnership items by reason of 1 
    or more of the events described in subsection (b) of section 6231, 
    the period for assessing any tax imposed by subtitle A which is 
    attributable to such items (or any item affected by such items) 
    shall not expire before the date which is 1 year after the date on 
    which the items become nonpartnership items. The period described in 
    the preceding sentence (including any extension period under this 
    sentence) may be extended with respect to any partner by agreement 
    entered into by the Secretary and such partner.

         (2) Special rule for partial settlement agreements

        If a partner enters into a settlement agreement with the 
    Secretary with respect to the treatment of some of the partnership 
    items in dispute for a partnership taxable year but other 
    partnership items for such year remain in dispute, the period of 
    limitations for assessing any tax attributable to the settled items 
    shall be determined as if such agreement had not been entered into.

(g) Period of limitations for penalties

    The provisions of this section shall apply also in the case of any 
addition to tax or an additional amount imposed under subchapter A of 
chapter 68 which arises with respect to any tax imposed under subtitle A 
in the same manner as if such addition or additional amount were a tax 
imposed by subtitle A.

(h) Suspension during pendency of bankruptcy proceeding

    If a petition is filed naming a partner as a debtor in a bankruptcy 
proceeding under title 11 of the United States Code, the running of the 
period of limitations provided in this section with respect to such 
partner shall be suspended--
        (1) for the period during which the Secretary is prohibited by 
    reason of such bankruptcy proceeding from making an assessment, and
        (2) for 60 days thereafter.

(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96 Stat. 
659; amended Pub. L. 99-514, title XVIII, Sec. 1875(d)(1), Oct. 22, 
1986, 100 Stat. 2896; Pub. L. 100-647, title I, Sec. 1018(o)(3), Nov. 
10, 1988, 102 Stat. 3585; Pub. L. 105-34, title XII, Secs. 1233(a)-(c), 
1235(a), Aug. 5, 1997, 111 Stat. 1023, 1024.)


                               Amendments

    1997--Subsec. (b)(2), (3). Pub. L. 105-34, Sec. 1233(c), added par. 
(2) and redesignated former par. (2) as (3).
    Subsec. (d)(1). Pub. L. 105-34, Sec. 1233(a), substituted ``(and, if 
a petition is filed under section 6226 with respect to such 
administrative adjustment, until the decision of the court becomes 
final), and'' for ``(and, if an action with respect to such 
administrative adjustment is brought during such period, until the 
decision of the court in such action becomes final), and''.
    Subsec. (f). Pub. L. 105-34, Sec. 1235(a), substituted ``Special 
rules'' for ``Items becoming nonpartnership items'' in heading, 
designated existing provisions as par. (1), added heading, and realigned 
margins, and added par. (2).
    Subsec. (h). Pub. L. 105-34, Sec. 1233(b), added subsec. (h).
    1988--Subsec. (f). Pub. L. 100-647 inserted sentence at end relating 
to extension of period with respect to any partner by agreement entered 
into by Secretary and such partner.
    1986--Subsec. (g). Pub. L. 99-514 added subsec. (g).


                    Effective Date of 1997 Amendment

    Section 1233(d) of Pub. L. 105-34 provided that:
    ``(1) Subsections (a) and (b).--The amendments made by subsections 
(a) and (b) [amending this section] shall apply to partnership taxable 
years with respect to which the period under section 6229 of the 
Internal Revenue Code of 1986 [26 U.S.C. 6229] for assessing tax has not 
expired on or before the date of the enactment of this Act [Aug. 5, 
1997].
    ``(2) Subsection (c).--The amendment made by subsection (c) 
[amending this section] shall apply to agreements entered into after the 
date of the enactment of this Act.''
    Section 1235(b) of Pub. L. 105-34 provided that: ``The amendment 
made by this section [amending this section] shall apply to settlements 
entered into after the date of the enactment of this Act [Aug. 5, 
1997].''


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 effective, except as otherwise provided, 
as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 
98-369, div. A, to which such amendment relates, see section 1881 of 
Pub. L. 99-514, set out as a note under section 48 of this title.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6227, 6228, 6230, 6234, 
6255, 6501, 6503, 6504, 6512 of this title.
