
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: 26USC6241]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 63--ASSESSMENT
 
         Subchapter D--Treatment of Electing Large Partnerships
 
         PART I--TREATMENT OF PARTNERSHIP ITEMS AND ADJUSTMENTS
 
Sec. 6241. Partner's return must be consistent with partnership 
        return
        

(a) General rule

    A partner of any electing large partnership shall, on the partner's 
return, treat each partnership item attributable to such partnership in 
a manner which is consistent with the treatment of such partnership item 
on the partnership return.

(b) Underpayment due to inconsistent treatment assessed as math error

    Any underpayment of tax by a partner by reason of failing to comply 
with the requirements of subsection (a) shall be assessed and collected 
in the same manner as if such underpayment were on account of a 
mathematical or clerical error appearing on the partner's return. 
Paragraph (2) of section 6213(b) shall not apply to any assessment of an 
underpayment referred to in the preceding sentence.

(c) Adjustments not to affect prior year of partners

                           (1) In general

        Except as provided in paragraph (2), subsections (a) and (b) 
    shall apply without regard to any adjustment to the partnership item 
    under part II.

    (2) Certain changes in distributive share taken into account 
                                 by partner

        (A) In general

            To the extent that any adjustment under part II involves a 
        change under section 704 in a partner's distributive share of 
        the amount of any partnership item shown on the partnership 
        return, such adjustment shall be taken into account in applying 
        this title to such partner for the partner's taxable year for 
        which such item was required to be taken into account.

        (B) Coordination with deficiency procedures

            (i) In general

                Subchapter B shall not apply to the assessment or 
            collection of any underpayment of tax attributable to an 
            adjustment referred to in subparagraph (A).
            (ii) Adjustment not precluded

                Notwithstanding any other law or rule of law, nothing in 
            subchapter B (or in any proceeding under subchapter B) shall 
            preclude the assessment or collection of any underpayment of 
            tax (or the allowance of any credit or refund of any 
            overpayment of tax) attributable to an adjustment referred 
            to in subparagraph (A) and such assessment or collection or 
            allowance (or any notice thereof) shall not preclude any 
            notice, proceeding, or determination under subchapter B.

        (C) Period of limitations

            The period for--
                (i) assessing any underpayment of tax, or
                (ii) filing a claim for credit or refund of any 
            overpayment of tax,

        attributable to an adjustment referred to in subparagraph (A) 
        shall not expire before the close of the period prescribed by 
        section 6248 for making adjustments with respect to the 
        partnership taxable year involved.

        (D) Tiered structures

            If the partner referred to in subparagraph (A) is another 
        partnership or an S corporation, the rules of this paragraph 
        shall also apply to persons holding interests in such 
        partnership or S corporation (as the case may be); except that, 
        if such partner is an electing large partnership, the adjustment 
        referred to in subparagraph (A) shall be taken into account in 
        the manner provided by section 6242.

(d) Addition to tax for failure to comply with section

            For addition to tax in case of partner's disregard of 
        requirements of this section, see part II of subchapter A of 
        chapter 68.

(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111 Stat. 
1009.)


                            Prior Provisions

    A prior section 6241, added Pub. L. 97-354, Sec. 4(a), Oct. 19, 
1982, 96 Stat. 1691, directed that tax treatment be determined at the 
corporate level, prior to repeal by Pub. L. 104-188, title I, 
Secs. 1307(c)(1), 1317(a), Aug. 20, 1996, 110 Stat. 1781, 1787, 
applicable to taxable years beginning after Dec. 31, 1996.

                  Section Referred to in Other Sections

    This section is referred to in section 6246 of this title.
