
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: 26USC6255]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 63--ASSESSMENT
 
         Subchapter D--Treatment of Electing Large Partnerships
 
                 PART III--DEFINITIONS AND SPECIAL RULES
 
Sec. 6255. Definitions and special rules


(a) Definitions

    For purposes of this subchapter--

                   (1) Electing large partnership

        The term ``electing large partnership'' has the meaning given to 
    such term by section 775.

                        (2) Partnership item

        The term ``partnership item'' has the meaning given to such term 
    by section 6231(a)(3).

(b) Partners bound by actions of partnership, etc.

                     (1) Designation of partner

        Each electing large partnership shall designate (in the manner 
    prescribed by the Secretary) a partner (or other person) who shall 
    have the sole authority to act on behalf of such partnership under 
    this subchapter. In any case in which such a designation is not in 
    effect, the Secretary may select any partner as the partner with 
    such authority.

                         (2) Binding effect

        An electing large partnership and all partners of such 
    partnership shall be bound--
            (A) by actions taken under this subchapter by the 
        partnership, and
            (B) by any decision in a proceeding brought under this 
        subchapter.

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

    For purposes of sections 6247 and 6252, a principal place of 
business located outside the United States shall be treated as located 
in the District of Columbia.

(d) Treatment where partnership ceases to exist

    If a partnership ceases to exist before a partnership adjustment 
under this subchapter takes effect, such adjustment shall be taken into 
account by the former partners of such partnership under regulations 
prescribed by the Secretary.

(e) Date decision becomes final

    For purposes of this subchapter, the principles of section 7481(a) 
shall be applied in determining the date on which a decision of a 
district court or the Claims Court becomes final.

(f) Partnerships in cases under title 11 of the United States Code

         (1) Suspension of period of limitations on making 
                    adjustment, assessment, or collection

        The running of any period of limitations provided in this 
    subchapter on making a partnership adjustment (or provided by 
    section 6501 or 6502 on the assessment or collection of any amount 
    required to be paid under section 6242) shall, in a case under title 
    11 of the United States Code, be suspended during the period during 
    which the Secretary is prohibited by reason of such case from making 
    the adjustment (or assessment or collection) and--
            (A) for adjustment or assessment, 60 days thereafter, and
            (B) for collection, 6 months thereafter.

    A rule similar to the rule of section 6213(f)(2) shall apply for 
    purposes of section 6246.

       (2) Suspension of period of limitation for filing for 
                               judicial review

        The running of the period specified in section 6247(a) or 
    6252(b) shall, in a case under title 11 of the United States Code, 
    be suspended during the period during which the partnership is 
    prohibited by reason of such case from filing a petition under 
    section 6247 or 6252 and for 60 days thereafter.

(g) Regulations

    The Secretary shall prescribe such regulations as may be necessary 
to carry out the provisions of this subchapter, including regulations--
        (1) to prevent abuse through manipulation of the provisions of 
    this subchapter, and
        (2) providing that this subchapter shall not apply to any case 
    described in section 6231(c)(1) (or the regulations prescribed 
    thereunder) where the application of this subchapter to such a case 
    would interfere with the effective and efficient enforcement of this 
    title.

In any case to which this subchapter does not apply by reason of 
paragraph (2), rules similar to the rules of sections 6229(f) and 
6255(f) shall apply.

(Added Pub. L. 105-34, title XII, Sec. 1222(a), Aug. 5, 1997, 111 Stat. 
1017.)
