26 U.S.C. § 6226
If the partnership-
section 6225 shall not apply with respect to such underpayment (and no assessment of tax, levy, or proceeding in any court for the collection of such underpayment shall be made against such partnership) and each such partner shall take such adjustment into account as provided in subsection (b). The election under paragraph (1) shall be made in such manner as the Secretary may provide and, once made, shall be revocable only with the consent of the Secretary.
Except as provided in paragraph (4), each partner's tax imposed by chapter 1 for the taxable year which includes the date the statement was furnished under subsection (a) shall be adjusted by the aggregate of the correction amounts determined under paragraph (2) for the taxable years referred to therein.
The correction amounts determined under this paragraph are-
Any tax attribute which would have been affected if the adjustments described in subsection (a) were taken into account for the taxable year referred to in paragraph (2)(A) shall-
If a partner which receives a statement under subsection (a)(2) is a partnership or an S corporation, such partner shall, with respect to the partner's share of the adjustment-
For purposes of subparagraph (A), with respect to a partner's share of the adjustment, the partnership adjustment tracking report shall be filed, and the imputed underpayment shall be paid or statements shall be furnished, not later than the due date for the return for the adjustment year of the audited partnership.
In the case of a partnership which has elected the application of section 6221(b) with respect to the taxable year of the partnership which includes the end of the reviewed year of the audited partnership, this paragraph shall apply notwithstanding such election.
For purposes of this paragraph, the term "audited partnership" means, with respect to any partner described in subparagraph (A), the partnership in the chain of ownership originally electing the application of this section.
The Secretary shall prescribe such rules as may be necessary with respect to trusts which receive a statement under subsection (a)(2).
Notwithstanding subsections (a) and (b), any penalties, additions to tax, or additional amount shall be determined as provided under section 6221 and the partners of the partnership for the reviewed year shall be liable for any such penalty, addition to tax, or additional amount.
In the case of an imputed underpayment with respect to which the application of this section is elected, or which is described in subsection (b)(4)(A)(ii)(I), interest shall be determined-
For the time period within which a partnership may file a petition for a readjustment, see section 6234(a).
26 U.S.C. § 6226
EDITORIAL NOTES
PRIOR PROVISIONSA prior section 6226, added Pub. L. 97-248, title IV, §402(a), Sept. 3, 1982, 96 Stat. 653; amended Pub. L. 97-448, title III, §306(c)(1)(A), Jan. 12, 1983, 96 Stat. 2406; Pub. L. 102-572, §902(b)(2), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 105-34, §§1238(b)(1), 1239 (b), 1240(a), Aug. 5, 1997, 111 Stat. 1026-1028, related to judicial review of final partnership administrative adjustments, prior to repeal by Pub. L. 114-74, §1101(a), Nov. 2, 2015, 129 Stat. 625.
AMENDMENTS2018-Subsec. (a). Pub. L. 115-141, §206(d), inserted "(and no assessment of tax, levy, or proceeding in any court for the collection of such underpayment shall be made against such partnership)" after "section 6225 shall not apply with respect to such underpayment" in concluding provisions.Subsec. (a)(2). Pub. L. 115-141, §201(c)(4), substituted "any adjustment to a partnership-related item" for "any adjustment to income, gain, loss, deduction, or credit".Subsec. (b)(1). Pub. L. 115-141, §206(e)(2), substituted "correction amounts" for "adjustment amounts". Pub. L. 115-141, §206(e)(1), substituted "adjusted" for "increased". Pub. L. 115-141, §204(b)(1), substituted "Except as provided in paragraph (4), each partner's" for "Each partner's".Subsec. (b)(2). Pub. L. 115-141, §206(e)(5), substituted "Correction amounts" for "Adjustment amounts" in heading. Pub. L. 115-141, §206(e)(3), substituted "increase or decrease" for "increase" in subpars. (A) and (B). Pub. L. 115-141, §206(e)(2), substituted "correction amounts" for "adjustment amounts" in introductory provisions.Subsec. (b)(2)(A). Pub. L. 115-141, §206(e)(4), substituted "and" for "plus" at end.Subsec. (b)(4). Pub. L. 115-141, §204(a), added par. (4). Subsec. (c)(2). Pub. L. 115-141, §204(b)(2), inserted "or which is described in subsection (b)(4)(A)(ii)(I)," after "is elected," in introductory provisions.2015-Subsec. (d). Pub. L. 114-113 added subsec. (d).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2018 AMENDMENT Amendment 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 AMENDMENT Amendment 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 DATESection 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.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- corporation
- The term "corporation" includes associations, joint-stock companies, and insurance companies.
- levy
- The term "levy" includes the power of distraint and seizure by any means.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.