
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: 26USC6230]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 63--ASSESSMENT
 
            Subchapter C--Tax Treatment of Partnership Items
 
Sec. 6230. Additional administrative provisions


(a) Coordination with deficiency proceedings

                           (1) In general

        Except as provided in paragraph (2) or (3), subchapter B of this 
    chapter shall not apply to the assessment or collection of any 
    computational adjustment.

        (2) Deficiency proceedings to apply in certain cases

            (A) Subchapter B shall apply to any deficiency attributable 
        to--
                (i) affected items which require partner level 
            determinations (other than penalties, additions to tax, and 
            additional amounts that relate to adjustments to partnership 
            items), or
                (ii) items which have become nonpartnership items (other 
            than by reason of section 6231(b)(1)(C)) and are described 
            in section 6231(e)(1)(B).

            (B) Subchapter B shall be applied separately with respect to 
        each deficiency described in subparagraph (A) attributable to 
        each partnership.
            (C) Notwithstanding any other law or rule of law, any notice 
        or proceeding under subchapter B with respect to a deficiency 
        described in this paragraph shall not preclude or be precluded 
        by any other notice, proceeding, or determination with respect 
        to a partner's tax liability for a taxable year.

    (3) Special rule in case of assertion by partner's spouse of 
                           innocent spouse relief

        (A) Notwithstanding section 6404(b), if the spouse of a partner 
    asserts that section 6013(e) applies with respect to a liability 
    that is attributable to any adjustment to a partnership item 
    (including any liability for any penalties, additions to tax, or 
    additional amounts relating to such adjustment), then such spouse 
    may file with the Secretary within 60 days after the notice of 
    computational adjustment is mailed to the spouse a request for 
    abatement of the assessment specified in such notice. Upon receipt 
    of such request, the Secretary shall abate the assessment. Any 
    reassessment of the tax with respect to which an abatement is made 
    under this subparagraph shall be subject to the deficiency 
    procedures prescribed by subchapter B. The period for making any 
    such reassessment shall not expire before the expiration of 60 days 
    after the date of such abatement.
        (B) If the spouse files a petition with the Tax Court pursuant 
    to section 6213 with respect to the request for abatement described 
    in subparagraph (A), the Tax Court shall only have jurisdiction 
    pursuant to this section to determine whether the requirements of 
    section 6013(e) have been satisfied. For purposes of such 
    determination, the treatment of partnership items (and the 
    applicability of any penalties, additions to tax, or additional 
    amounts) under the settlement, the final partnership administrative 
    adjustment, or the decision of the court (whichever is appropriate) 
    that gave rise to the liability in question shall be conclusive.
        (C) Rules similar to the rules contained in subparagraphs (B) 
    and (C) of paragraph (2) shall apply for purposes of this paragraph.

(b) Mathematical and clerical errors appearing on partnership return

                           (1) In general

        Section 6225 shall not apply to any adjustment necessary to 
    correct a mathematical or clerical error (as defined in section 
    6213(g)(2)) appearing on the partnership return.

                            (2) Exception

        Paragraph (1) shall not apply to a partner if, within 60 days 
    after the day on which notice of the correction of the error is 
    mailed to the partner, such partner files with the Secretary a 
    request that the correction not be made.

(c) Claims arising out of erroneous computations, etc.

                           (1) In general

        A partner may file a claim for refund on the grounds that--
            (A) the Secretary erroneously computed any computational 
        adjustment necessary--
                (i) to make the partnership items on the partner's 
            return consistent with the treatment of the partnership 
            items on the partnership return, or
                (ii) to apply to the partner a settlement, a final 
            partnership administrative adjustment, or the decision of a 
            court in an action brought under section 6226 or section 
            6228(a),

            (B) the Secretary failed to allow a credit or to make a 
        refund to the partner in the amount of the overpayment 
        attributable to the application to the partner of a settlement, 
        a final partnership administrative adjustment, or the decision 
        of a court in an action brought under section 6226 or section 
        6228(a), or
            (C) the Secretary erroneously imposed any penalty, addition 
        to tax, or additional amount which relates to an adjustment to a 
        partnership item.

                      (2) Time for filing claim

        (A) Under paragraph (1)(A) or (C)

            Any claim under subparagraph (A) or (C) of paragraph (1) 
        shall be filed within 6 months after the day on which the 
        Secretary mails the notice of computational adjustment to the 
        partner.

        (B) Under paragraph (1)(B)

            Any claim under paragraph (1)(B) shall be filed within 2 
        years after whichever of the following days is appropriate:
                (i) the day on which the settlement is entered into,
                (ii) the day on which the period during which an action 
            may be brought under section 6226 with respect to the final 
            partnership administrative adjustment expires, or
                (iii) the day on which the decision of the court becomes 
            final.

                    (3) Suit if claim not allowed

        If any portion of a claim under paragraph (1) is not allowed, 
    the partner may bring suit with respect to such portion within the 
    period specified in subsection (a) of section 6532 (relating to 
    periods of limitations on refund suits).

                 (4) No review of substantive issues

        For purposes of any claim or suit under this subsection, the 
    treatment of partnership items on the partnership return, under the 
    settlement, under the final partnership administrative adjustment, 
    or under the decision of the court (whichever is appropriate) shall 
    be conclusive. In addition, the determination under the final 
    partnership administrative adjustment or under the decision of the 
    court (whichever is appropriate) concerning the applicability of any 
    penalty, addition to tax, or additional amount which relates to an 
    adjustment to a partnership item shall also be conclusive. 
    Notwithstanding the preceding sentence, the partner shall be allowed 
    to assert any partner level defenses that may apply or to challenge 
    the amount of the computational adjustment.

            (5) Rules for seeking innocent spouse relief

        (A) In general

            The spouse of a partner may file a claim for refund on the 
        ground that the Secretary failed to relieve the spouse under 
        section 6015 from a liability that is attributable to an 
        adjustment to a partnership item (including any liability for 
        any penalties, additions to tax, or additional amounts relating 
        to such adjustment).

        (B) Time for filing claim

            Any claim under subparagraph (A) shall be filed within 6 
        months after the day on which the Secretary mails to the spouse 
        the notice of computational adjustment referred to in subsection 
        (a)(3)(A).

        (C) Suit if claim not allowed

            If the claim under subparagraph (B) is not allowed, the 
        spouse may bring suit with respect to the claim within the 
        period specified in paragraph (3).

        (D) Prior determinations are binding

            For purposes of any claim or suit under this paragraph, the 
        treatment of partnership items (and the applicability of any 
        penalties, additions to tax, or additional amounts) under the 
        settlement, the final partnership administrative adjustment, or 
        the decision of the court (whichever is appropriate) that gave 
        rise to the liability in question shall be conclusive.

(d) Special rules with respect to credits or refunds attributable to 
        partnership items

                           (1) In general

        Except as otherwise provided in this subsection, no credit or 
    refund of an overpayment attributable to a partnership item (or an 
    affected item) for a partnership taxable year shall be allowed or 
    made to any partner after the expiration of the period of limitation 
    prescribed in section 6229 with respect to such partner for 
    assessment of any tax attributable to such item.

                (2) Administrative adjustment request

        If a request for an administrative adjustment under section 6227 
    with respect to a partnership item is timely filed, credit or refund 
    of any overpayment attributable to such partnership item (or an 
    affected item) may be allowed or made at any time before the 
    expiration of the period prescribed in section 6228 for bringing 
    suit with respect to such request.

                   (3) Claim under subsection (c)

        If a timely claim is filed under subsection (c) for a credit or 
    refund of an overpayment attributable to a partnership item (or 
    affected item), credit or refund of such overpayment may be allowed 
    or made at any time before the expiration of the period specified in 
    section 6532 (relating to periods of limitations on suits) for 
    bringing suit with respect to such claim.

                           (4) Timely suit

        Paragraph (1) shall not apply to any credit or refund of any 
    overpayment attributable to a partnership item (or an item affected 
    by such partnership item) if a partner brings a timely suit with 
    respect to a timely administrative adjustment request under section 
    6228 or a timely claim under subsection (c) relating to such 
    overpayment.

     (5) Overpayments refunded without requirement that partner 
                                 file claim

        In the case of any overpayment by a partner which is 
    attributable to a partnership item (or an affected item) and which 
    may be refunded under this subchapter, to the extent practicable 
    credit or refund of such overpayment shall be allowed or made 
    without any requirement that the partner file a claim therefor.

            (6) Subchapter B of chapter 66 not applicable

        Subchapter B of chapter 66 (relating to limitations on credit or 
    refund) shall not apply to any credit or refund of an overpayment 
    attributable to a partnership item.

(e) Tax matters partner required to furnish names of partners to 
        Secretary

    If the Secretary mails to any partnership the notice specified in 
paragraph (1) of section 6223(a) with respect to any partnership taxable 
year, the tax matters partner shall furnish to the Secretary the name, 
address, profits interest, and taxpayer identification number of each 
person who was a partner in such partnership at any time during such 
taxable year. If the tax matters partner later discovers that the 
information furnished to the Secretary was incorrect or incomplete, the 
tax matters partner shall furnish such revised or additional information 
as may be necessary.

(f) Failure of tax matters partner, etc., to fulfill responsibility does 
        not affect applicability of proceeding

    The failure of the tax matters partner, a pass-thru partner, the 
representative of a notice group, or any other representative of a 
partner to provide any notice or perform any act required under this 
subchapter or under regulations prescribed under this subchapter on 
behalf of such partner does not affect the applicability of any 
proceeding or adjustment under this subchapter to such partner.

(g) Date decision of court becomes final

    For purposes of section 6229(d)(1) and section 6230(c)(2)(B), the 
principles of section 7481(a) shall be applied in determining the date 
on which a decision of a district court or the Court of Federal Claims 
becomes final.

(h) Examination authority not limited

    Nothing in this subchapter shall be construed as limiting the 
authority granted to the Secretary under section 7602.

(i) Time and manner of filing statements, making elections, etc.

    Except as otherwise provided in this subchapter, each--
        (1) statement,
        (2) election,
        (3) request, and
        (4) furnishing of information,

shall be filed or made at such time, in such manner, and at such place 
as may be prescribed in regulations.

(j) Partnerships having principal place of business outside the United 
        States

    For purposes of sections 6226 and 6228, a principal place of 
business located outside the United States shall be treated as located 
in the District of Columbia.

(k) Regulations

    The Secretary shall prescribe such regulations as may be necessary 
to carry out the purposes of this subchapter. Any reference in this 
subchapter to regulations is a reference to regulations prescribed by 
the Secretary.

(l) Court rules

    Any action brought under any provision of this subchapter shall be 
conducted in accordance with such rules of practice and procedure as may 
be prescribed by the Court in which the action is brought.

(Added Pub. L. 97-248, title IV, Sec. 402(a), Sept. 3, 1982, 96 Stat. 
660; amended Pub. L. 98-369, div. A, title VII, Sec. 714(p)(2)(A), July 
18, 1984, 98 Stat. 964; Pub. L. 99-514, title XVIII, Sec. 1875(d)(2)(A), 
Oct. 22, 1986, 100 Stat. 2896; Pub. L. 100-647, title I, 
Sec. 1018(o)(1), Nov. 10, 1988, 102 Stat. 3584; Pub. L. 102-572, title 
IX, Sec. 902(b)(2), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 105-34, title 
XII, Secs. 1237(a)-(c)(1), 1238(b)(2)-(6), 1239(c)(1), Aug. 5, 1997, 111 
Stat. 1025-1028; Pub. L. 105-206, title III, Sec. 3201(e)(2), July 22, 
1998, 112 Stat. 740.)


                               Amendments

    1998--Subsec. (c)(5)(A). Pub. L. 105-206 substituted ``section 
6015'' for ``section 6013(e)''.
    1997--Subsec. (a)(1). Pub. L. 105-34, Sec. 1237(c)(1), substituted 
``paragraph (2) or (3)'' for ``paragraph (2)''.
    Subsec. (a)(2)(A)(i). Pub. L. 105-34, Sec. 1238(b)(2), amended cl. 
(i) generally. Prior to amendment, cl. (i) read as follows: ``affected 
items which require partner level determinations, or''.
    Subsec. (a)(3). Pub. L. 105-34, Sec. 1237(a), added par. (3).
    Subsec. (a)(3)(A). Pub. L. 105-34, Sec. 1238(b)(3)(A), inserted 
``(including any liability for any penalties, additions to tax, or 
additional amounts relating to such adjustment)'' after ``partnership 
item''.
    Subsec. (a)(3)(B). Pub. L. 105-34, Sec. 1238(b)(3)(B), inserted 
``(and the applicability of any penalties, additions to tax, or 
additional amounts)'' after ``partnership items''.
    Subsec. (c)(1)(C). Pub. L. 105-34, Sec. 1238(b)(4), added subpar. 
(C).
    Subsec. (c)(2)(A). Pub. L. 105-34, Sec. 1238(b)(5), inserted ``or 
(C)'' after ``(1)(A)'' in subpar. heading and substituted ``subparagraph 
(A) or (C) of paragraph (1)'' for ``paragraph (1)(A)'' in text.
    Subsec. (c)(4). Pub. L. 105-34, Sec. 1238(b)(6), inserted at end 
``In addition, the determination under the final partnership 
administrative adjustment or under the decision of the court (whichever 
is appropriate) concerning the applicability of any penalty, addition to 
tax, or additional amount which relates to an adjustment to a 
partnership item shall also be conclusive. Notwithstanding the preceding 
sentence, the partner shall be allowed to assert any partner level 
defenses that may apply or to challenge the amount of the computational 
adjustment.''
    Subsec. (c)(5). Pub. L. 105-34, Sec. 1237(b), added par. (5).
    Subsec. (c)(5)(A). Pub. L. 105-34, Sec. 1238(b)(3)(C), inserted 
before period at end ``(including any liability for any penalties, 
additions to tax, or additional amounts relating to such adjustment)''.
    Subsec. (c)(5)(D). Pub. L. 105-34, Sec. 1238(b)(3)(D), inserted 
``(and the applicability of any penalties, additions to tax, or 
additional amounts)'' after ``partnership items''.
    Subsec. (d)(6). Pub. L. 105-34, Sec. 1239(c)(1), struck out ``(or an 
affected item)'' after ``partnership item''.
    1992--Subsec. (g). Pub. L. 102-572 substituted ``Court of Federal 
Claims'' for ``Claims Court''.
    1988--Subsec. (a)(2)(A)(ii). Pub. L. 100-647 inserted ``(other than 
by reason of section 6231(b)(1)(C))'' after ``nonpartnership items''.
    1986--Subsec. (a). Pub. L. 99-514 substituted ``Coordination with 
deficiency proceedings'' for ``Normal deficiency proceedings do not 
apply to computational adjustments'' as subsec. heading, and amended 
text generally. Prior to amendment text read as follows: ``Subchapter B 
of this chapter shall not apply to the assessment or collection of any 
computational adjustment.''
    1984--Subsec. (c)(1)(B). Pub. L. 98-369 struck out ``(or erroneously 
computed the amount of any such credit or refund)'' after ``section 
6228(a)''.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-206 applicable to any liability for tax 
arising after July 22, 1998, and any liability for tax arising on or 
before such date but remaining unpaid as of such date, see section 
3201(g)(1) of Pub. L. 105-206, set out as a note under section 6015 of 
this title.


                    Effective Date of 1997 Amendment

    Section 1237(d) of Pub. L. 105-34 provided that: ``The amendments 
made by this section [amending this section and section 6503 of this 
title] 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].''
    Amendment by section 1238(b)(2)-(6) of Pub. L. 105-34 applicable to 
partnership taxable years ending after Aug. 5, 1997, see section 1238(c) 
of Pub. L. 105-34, set out as a note under section 6221 of this title.
    Amendment by section 1239(c)(1) of Pub. L. 105-34 applicable to 
partnership taxable years ending after Aug. 5, 1997, see section 1239(f) 
of Pub. L. 105-34, set out as a note under section 6225 of this title.


                    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 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

    Section 1875(d)(2)(C) of Pub. L. 99-514 provided that: ``The 
amendments made by this paragraph [amending this section and sections 
6213 and 6503 of this title] shall take effect as if included in the Tax 
Equity and Fiscal Responsibility Act of 1982 [Pub. L. 97-248].''


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective as if included in the 
provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. 
L. 97-248, to which such amendment relates, see section 715 of Pub. L. 
98-369, set out as a note under section 31 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 6213, 6234, 6422, 6503, 
6512, 6515, 7422 of this title.
