Title 26 — Internal Revenue CodeRelease 119-73
§6232 Assessment, Collection, and Payment
Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 63— ASSESSMENT › Subchapter C— Treatment of Partnerships › Part III— PROCEDURE › § 6232
Summary
When the IRS adjusts a partnership's return and the partnership owes an imputed underpayment, the IRS collects it from the partnership the same way it collects regular tax. But it generally has to wait: no assessment or collection can start until 90 days after the IRS mails the final partnership adjustment notice, and if the partnership takes the case to court, until the court's decision is final. Collection that jumps the gun can be blocked in court. Simple math or clerical errors on the return can be fixed under faster rules, and the partnership can waive the waiting period in writing. If the partnership never goes to court, it owes no more than the amount in the notice. If the partnership does not pay within 10 days after the IRS demands payment, the interest rate on the amount is figured using 5 percentage points instead of 3, and the IRS can bill each partner for their share of what is unpaid. The IRS has 2 years after the demand to assess a partner. S corporations and their shareholders are treated like partnerships and partners under these rules.
Full Legal Text
Title 26, §6232
Internal Revenue Code — Source: USLM XML via OLRC
(a)Any imputed underpayment shall be assessed and collected in the same manner as if it were a tax imposed for the adjustment year by subtitle A, except that—
(1)subchapter B of chapter 63 shall not apply, and
(2)in the case of an administrative adjustment request to which section 6227(b)(1) applies, the underpayment shall be paid and may be assessed when the request is filed.
(b)Except as otherwise provided in this subtitle (other than subchapter B of this chapter), no assessment of an imputed underpayment may be made (and no levy or proceeding in any court for the collection of any amount resulting from such adjustment may be made, begun or prosecuted) before—
(1)the close of the 90th day after the day on which a notice of a final partnership adjustment was mailed, and
(2)if a petition is filed under section 6234 with respect to such notice, the decision of the court has become final.
(c)Notwithstanding section 7421(a), any action which violates subsection (b) may be enjoined in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction to enjoin any action under this subsection unless a timely petition has been filed under section 6234 and then only in respect of the adjustments that are the subject of such petition.
(d)(1)(A)If the partnership is notified that, on account of a mathematical or clerical error appearing on the partnership return, an adjustment to an item is required, rules similar to the rules of paragraphs (1) and (2) of section 6213(b) shall apply to such adjustment.
(B)If a partnership is a partner in another partnership, any adjustment on account of such partnership’s failure to comply with the requirements of section 6222(a) with respect to its interest in such other partnership shall be treated as an adjustment referred to in subparagraph (A), except that paragraph (2) of section 6213(b) shall not apply to such adjustment.
(2)The partnership may at any time (whether or not any notice of partnership adjustment has been issued), by a signed notice in writing filed with the Secretary, waive the restrictions provided in subsection (b) on the making of any partnership adjustment.
(e)If no proceeding under section 6234 is begun with respect to any notice of a final partnership adjustment during the 90-day period described in subsection (b), the amount for which the partnership is liable under section 6225 shall not exceed the amount determined in accordance with such notice.
(f)(1)If any amount of any imputed underpayment to which section 6225 applies or any specified similar amount (or any interest or penalties with respect to any such amount) has not been paid by the date which is 10 days after the date on which the Secretary provides notice and demand for such payment—
(A)section 6621(a)(2)(B) shall be applied by substituting “5 percentage points” for “3 percentage points” with respect to such amount, and
(B)the Secretary may assess upon each partner of the partnership (determined as of the close of the adjustment year or, if the partnership has ceased to exist as of such time, the former partners of the partnership as determined for purposes of section 6241(7)) a tax equal to such partner’s proportionate share of such amount (including any such interest or penalties, determined after application of subparagraph (A)).
(2)For purposes of this subsection, the term “specified similar amount” means—
(A)the amount described in subclause (II) of section 6226(b)(4)(A)(ii) (including any failure to satisfy the requirement of subclause (I) of such section which is treated as a failure to pay such amount under section 6651(i)), and
(B)any amount assessed under paragraph (1)(B) upon a partner which is a partnership.
(3)For purposes of paragraph (1), a partner’s proportionate share is such percentage as the Secretary may determine on the basis of such partner’s distributive share. The Secretary shall make determinations under the preceding sentence such that the aggregate proportionate shares so determined total 100 percent.
(4)The liability of the partnership for any amount with respect to which a partner is made liable under paragraph (1) shall be reduced upon payment by the partner of such amount. Paragraph (1)(B) shall not apply with respect to any amount after the date on which such amount is paid by the partnership.
(5)For purposes of this subsection, an S corporation and its shareholders shall be treated in the same manner as a partnership and its partners.
(6)(A)Subchapter B shall not apply to any assessment or collection under this paragraph.
(B)Except as otherwise provided in this subtitle, no assessment may be made (or proceeding in court begun without assessment) with respect to any partner with respect to an amount under paragraph (1) after the date which is 2 years after the date on which the Secretary provides the notice and demand referred to in paragraph (1) with respect to such amount.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 6232, added Pub. L. 97–248, title IV, § 402(a), Sept. 3, 1982, 96 Stat. 666, related to extension of subchapter provisions, respecting tax treatment of partnership items, to windfall profit tax, prior to repeal by Pub. L. 100–418, title I, § 1941(b)(1), Aug. 23, 1988, 102 Stat. 1323.
Amendments
2018—Subsec. (a). Pub. L. 115–141, § 206(g)(1), substituted “except that—” for “except that in the case of an administrative adjustment request to which section 6227(b)(1) applies, the underpayment shall be paid when the request is filed.” and added pars. (1) and (2). Subsec. (b). Pub. L. 115–141, § 206(p)(4), substituted “this subtitle (other than subchapter B of this chapter)” for “this chapter” in introductory provisions. Pub. L. 115–141, § 206(g)(2), substituted “assessment of an imputed underpayment” for “assessment of a deficiency” in introductory provisions and inserted concluding provisions. Subsec. (d)(1)(A). Pub. L. 115–141, § 206(p)(5), substituted “an item” for “a item”. Subsec. (e). Pub. L. 115–141, § 206(p)(6), struck out “thereof” after “subsection (b)”. Subsec. (f). Pub. L. 115–141, § 205(a), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date
of 2018 AmendmentAmendment by Pub. L. 115–141 effective as if included in section 1101 of Pub. L. 114–74, see section 207 of Pub. L. 115–141, set out as a note under section 6031 of this title.
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of Pub. L. 114–74, set out as a note under section 6221 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6232
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73