§6235 — Title 26 Internal Revenue Code | U.S. Code

Summary

The IRS usually has three years to change a partnership’s tax year. That three-year period starts from the latest of when the return was filed, the return due date, or when the partnership filed an administrative adjustment request under section 6227. For a change that modifies an imputed underpayment, the time limit is 270 days (plus any extension the IRS agrees to). For changes after a notice of proposed partnership adjustment, the time limit is 330 days (plus any agreed extension). The partnership and the IRS can extend these deadlines by agreement before they end. Exceptions: if the return is false or fraudulent to evade tax, or if no return was filed, there is no time limit. If the partnership left out certain amounts described in section 6501(e)(1), the period is 6 years. A return made by the IRS under section 6020(b) is not treated as the partnership’s return. Special timing rules also apply for information required under sections 6501(c)(8) and 6501(c)(10).

Title 26, §6235

Internal Revenue Code — Source: USLM XML via OLRC

(a)Except as otherwise provided in this section or section 905(c), no adjustment under this subchapter for any partnership taxable year may be made after the later of—

(1)the date which is 3 years after the latest of—

(A)the date on which the partnership return for such taxable year was filed,

(B)the return due date for the taxable year, or

(C)the date on which the partnership filed an administrative adjustment request with respect to such year under section 6227, or

(2)in the case of any modification of an imputed underpayment under section 6225(c), the date that is 270 days (plus the number of days of any extension consented to by the Secretary under paragraph (7) thereof) after the date on which everything required to be submitted to the Secretary pursuant to such section is so submitted, or

(3)in the case of any notice of a proposed partnership adjustment under section 6231(a)(2), the date that is 330 days (plus the number of days of any extension consented to by the Secretary under section 6225(c)(7)) after the date of such notice.

(b)The period described in subsection (a) (including an extension period under this subsection) may be extended by an agreement entered into by the Secretary and the partnership before the expiration of such period.

(c)(1)In the case of a false or fraudulent partnership return with intent to evade tax, the adjustment may be made at any time.

(2)If any partnership omits from gross income an amount properly includible therein and such amount is described in subparagraph (A) or (C) of section 6501(e)(1), subsection (a) shall be applied by substituting “6 years” for “3 years”.

(3)In the case of a failure by a partnership to file a return for any taxable year, the adjustment may be made at any time.

(4)For purposes of this section, a return executed by the Secretary under subsection (b) of section 6020 on behalf of the partnership shall not be treated as a return of the partnership.

(5)In the case of a partnership that is required to report any information described in section 6501(c)(8), the time for making any adjustment under this subchapter with respect to any tax return, event, or period to which such information relates shall not expire before the date that is determined under section 6501(c)(8).

(6)If a partnership fails to include on any return or statement any information with respect to a listed transaction as described in section 6501(c)(10), the time for making any adjustment under this subchapter with respect to such transaction shall not expire before the date that is determined under section 6501(c)(10).

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Subsec. (a). Pub. L. 115–141, § 206(k)(1), inserted “or section 905(c)” after “Except as otherwise provided in this section” and substituted “subchapter” for “subpart” in introductory provisions. Subsec. (a)(3). Pub. L. 115–141, § 206(k)(2), substituted “section 6225(c)(7))” for “section 6225(c)(7)”. Subsec. (c)(2). Pub. L. 115–141, § 206(k)(3), substituted “subparagraph (A) or (C) of section 6501(e)(1)” for “section 6501(e)(1)(A)”. Subsec. (c)(5), (6). Pub. L. 115–141, § 206(k)(4), added pars. (5) and (6). Subsec. (d). Pub. L. 115–141, § 206(k)(5), struck out subsec. (d). Text read as follows: “If notice of a final partnership adjustment with respect to any taxable year is mailed under section 6231, the running of the period specified in subsection (a) (as modified by the other provisions of this section) shall be suspended— “(1) for the period during which an action may be brought under section 6234 (and, if a petition is filed under such section with respect to such notice, until the decision of the court becomes final), and “(2) for 1 year thereafter.” 2015—Subsec. (a)(2). Pub. L. 114–113, § 411(c)(1), substituted “paragraph (7)” for “paragraph (4)”. Subsec. (a)(3). Pub. L. 114–113, § 411(c)(2), substituted “330 days (plus the number of days of any extension consented to by the Secretary under section 6225(c)(7)” for “270 days”.

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.

§6235 Period of Limitations on Making Adjustments

Summary

Title 26, §6235

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

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