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Title 26 — Internal Revenue CodeRelease 119-73

§6234 Judicial Review of Partnership Adjustment

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 63— ASSESSMENT › Subchapter C— Treatment of Partnerships › Part III— PROCEDURE › § 6234

Last updated Apr 6, 2026|Official source

Summary

If the IRS mails a partnership a notice of final partnership adjustment, the partnership has 90 days to challenge it in court. It can file in the Tax Court, in the federal district court where its main place of business is, or in the Court of Federal Claims. To use a district court or the Court of Federal Claims, the partnership must first deposit the full disputed amount, including penalties, with the IRS. The deposit does not count as paying the tax, and a court can excuse a good-faith shortfall that is fixed in time. The court can then decide every partnership-related item for that year, how the items are split among the partners, and whether penalties apply. Its decision counts as a final judgment and can be appealed. If the case is dismissed, the dismissal counts as a ruling that the IRS notice was correct. These rules apply to returns for partnership tax years beginning after December 31, 2017.

Full Legal Text

Title 26, §6234

Internal Revenue Code — Source: USLM XML via OLRC

(a)Within 90 days after the date on which a notice of a final partnership adjustment is mailed under section 6231 with respect to any partnership taxable year, the partnership may file a petition for a readjustment for such taxable year with—
(1)the Tax Court,
(2)the district court of the United States for the district in which the partnership’s principal place of business is located, or
(3)the Court of Federal Claims.
(b)(1)A readjustment petition under this section may be filed in a district court of the United States or the Court of Federal Claims only if the partnership filing the petition deposits with the Secretary, on or before the date the petition is filed, the amount of (as of the date of the filing of the petition) the imputed underpayment, penalties, additions to tax, and additional amounts with respect to such imputed underpayment if the partnership adjustment was made as provided by the notice of final partnership adjustment. The court may by order provide that the jurisdictional requirements of this paragraph are satisfied where there has been a good faith attempt to satisfy such requirement and any shortfall of the amount required to be deposited is timely corrected.
(2)Any amount deposited under paragraph (1), while deposited, shall not be treated as a payment of tax for purposes of this title (other than chapter 67).
(c)A court with which a petition is filed in accordance with this section shall have jurisdiction to determine all partnership-related items for the partnership taxable year to which the notice of final partnership adjustment relates, the proper allocation of such items among the partners, and the applicability of any penalty, addition to tax, or additional amount for which the partnership may be liable under this subchapter.
(d)Any determination by a court under this section shall have the force and effect of a decision of the Tax Court or a final judgment or decree of the district court or the Court of Federal Claims, as the case may be, and shall be reviewable as such. The date of any such determination shall be treated as being the date of the court’s order entering the decision.
(e)If an action brought under this section is dismissed other than by reason of a rescission under section 6231(c),11 See References in Text note below. the decision of the court dismissing the action shall be considered as its decision that the notice of final partnership adjustment is correct, and an appropriate order shall be entered in the records of the court.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 6231(c), referred to in subsec. (e), was redesignated section 6231(d) by Pub. L. 115–141, div. U, title II, § 206(h)(1), Mar. 23, 2018, 132 Stat. 1179.

Prior Provisions

A prior section 6234, added Pub. L. 105–34, title XII, § 1231(a), Aug. 5, 1997, 111 Stat. 1020; amended Pub. L. 107–147, title IV, § 416(d)(1)(D), Mar. 9, 2002, 116 Stat. 55, related to declaratory judgment relating to treatment of items other than partnership items with respect to an oversheltered return, prior to repeal by Pub. L. 114–74, title XI, § 1101(a), Nov. 2, 2015, 129 Stat. 625.

Amendments

2018—Subsec. (b)(1). Pub. L. 115–141, § 206(j), substituted “the amount of (as of the date of the filing of the petition) the imputed underpayment, penalties, additions to tax, and additional amounts with respect to such imputed underpayment” for “the amount of the imputed underpayment (as of the date of the filing of the petition)”. Subsec. (c). Pub. L. 115–141, § 201(c)(7), substituted “all partnership-related items” for “all items of income, gain, loss, deduction, or credit of the partnership”. 2015—Pub. L. 114–113 substituted “Court of Federal Claims” for “Claims Court” wherever appearing.

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

of 2015 AmendmentAmendment by Pub. L. 114–113 effective as if included in section 1101 of Pub. L. 114–74, see section 411(e) of Pub. L. 114–113, 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. § 6234

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73