PRIA, Government Policy, Made Personal

Summary

Sets time limits for when the IRS can change a partnership’s tax for a year. Normally the IRS must make any adjustment within the later of: three years after the latest of the partnership’s return filing date, the return due date, or the date the partnership filed an administrative adjustment request under section 6227; 270 days (plus any extra days the IRS agrees to under section 6225(c)(7)) after everything needed for a modification of an imputed underpayment under section 6225(c) is submitted; or 330 days (plus any extra days the IRS agrees to under section 6225(c)(7)) after a notice of a proposed partnership adjustment under section 6231(a)(2). The time can be extended if the IRS and the partnership agree before the deadline. There are exceptions: if the return was false with intent to evade tax, or if no return was filed, the IRS can adjust at any time. If the partnership left out certain income covered by section 6501(e)(1)(A) or (C), the limit is 6 years instead of 3. A return made by the IRS under section 6020(b) is not treated as the partnership’s return. Special reporting rules in section 6501(c)(8) and listed-transaction rules in section 6501(c)(10) can also set later deadlines.

Title 26, §6235

Internal Revenue Code, Source: USLM XML via OLRC

(a)In general

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)

(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)Extension by agreement

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)Special rule in case of fraud, etc.

(1)False return

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

(2)Substantial omission of income

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)No return

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)Return filed by Secretary

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)Information required to be reported

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)Listed transactions

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

Citations & Metadata