Sec. 206. Other technical corrections related to partnership audit rules
1,167 words·~5 min read·
/bill/114/hr/6439/ih/section-206·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 6031(b) is amended by striking the last sentence and inserting the following: Information required to be furnished by the partnership under this subsection may not be amended after the due date of the return under subsection
(a)to which such information relates, except— in the case of a partnership which has elected the application of section 6221(b) for the taxable year, as provided in the procedures under section 6225(c), with respect to statements under section 6226, or as otherwise provided by the Secretary. . Section 6225(c)(2), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: An administrative adjustment request under section 6227 and a partnership adjustment tracking report under section 6226(b)(4)(A) shall not be treated as a return for purposes of this paragraph. . Section 6226(a)(2) is amended by striking in the notice of final partnership adjustment and inserting by reference to the final determination with respect to such adjustment . Section 6225(d) is amended by adding at the end the following new paragraph: The final determination is made with respect to an adjustment on the date on which— in the case of an adjustment pursuant to the decision of a court in a proceeding brought under section 6234, such decision becomes final, in the case of an administrative adjustment request under section 6227, such administrative adjustment request is filed, or in any other case, 90 days after the date on which the notice of the final partnership adjustment is mailed under section 6231. . Section 6225(d)(2) is amended by striking in which— and all that follows and inserting in which the final determination is made with respect to the adjustment. . Section 6227(b) is amended by striking is made both places it appears and inserting is filed . Section 6226(a) is amended by inserting (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 . Section 6226(b) is amended— by striking increased in paragraph
(1)and inserting adjusted , by striking adjustment amounts each place it appears in paragraphs
(1)and
(2)and inserting correction amounts , by striking increase each place it appears in subparagraphs
(A)and
(B)of paragraph
(2)and inserting increase or decrease , by striking plus at the end of paragraph (2)(A) and inserting and , and by striking in the heading of paragraph
(2)and inserting Adjustment amounts . Correction amounts Section 6231 is amended by redesignating subsections
(b)and
(c)as subsections
(c)and (d), respectively, and by inserting after subsection
(a)the following new subsection: Any notice of a proposed partnership adjustment shall not be mailed later than the date determined under section 6235 (determined without regard to paragraphs
(2)and
(3)of subsection
(a)thereof). Except to the extent that the partnership elects to waive the application of this subparagraph, any notice of a final partnership adjustment shall not be mailed earlier than 270 days after the date on which the notice of the proposed partnership adjustment is mailed. For the period of limitations on making adjustments, see section 6235. . Section 6231(a) is amended by striking Any notice of a final partnership adjustment and all that follows through Such notices and inserting Any notice of a final partnership adjustment . Section 6233 is amended by adding at the end the following new subsection: For rules allowing deposits to suspend running of interest on potential underpayments, see section 6603. . Section 6241 , as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: In the case of partnership-related items which involve special enforcement matters, the Secretary may prescribe regulations pursuant to which— this subchapter (or any portion thereof) does not apply to such items, and such items are subject to such special rules (including rules related to assessment and collection) as the Secretary determines to be necessary for the effective and efficient enforcement of this title. For purposes of subparagraph (A), the term special enforcement matters means— failure to comply with the requirements of section 6226(b)(4)(A)(ii), assessments under section 6851 (relating to termination assessments of income tax) or section 6861 (relating to jeopardy assessments of income, estate, gift, and certain excise taxes), criminal investigations, indirect methods of proof of income, foreign partnerships, and other matters that the Secretary determines by regulation present special enforcement considerations. . Section 6651 is amended by redesignating subsection
(i)as subsection
(j)and by inserting after subsection
(h)the following new subsection: For purposes of this section, any failure to comply with section 6226(b)(4)(A)(ii) shall be treated as a failure to pay the amount described in subclause
(I)thereof and such amount shall be treated for purposes of this section as an amount shown as tax on a return specified in subsection (a)(1). . Section 6698(a) is amended— in the matter preceding paragraph
(1)by inserting , or a partnership adjustment tracking report under section 6226(b)(4)(A), after under section 6031 , in paragraph
(1)by inserting , or such report, after such return , and in paragraph (2)— by inserting or a report after a return , and by inserting or 6226(b)(4)(A), respectively before the comma at the end. Section 6696(e)(1) is amended by inserting , any administrative adjustment request under section 6227, and any partnership adjustment tracking report under section 6226(b)(4)(A) before the period at the end. Section 6702 is amended by adding at the end the following new subsection: An administrative adjustment request under section 6227 and a partnership adjustment tracking report under section 6226(b)(4)(A) shall be treated as a return for purposes of this section. . Section 6724(d)(2) is amended by striking or at the end of subparagraph (HH), by striking the period at the end of subparagraph
(II)and inserting , or , and by inserting after subparagraph
(II)the following new subparagraph: section 6226(a)(2) (relating to statements relating to alternative to payment of imputed underpayment by partnership) or under any other provision of this title which provides for the application of rules similar to such section. . Section 6232(d)(1)(A) is amended by striking a item and inserting an item . Section 6232(e) is amended by striking thereof . Section 6235(a) is amended by striking subpart and inserting subchapter . Section 6235(a)(3) is amended by striking section 6225(c)(7) and inserting section 6225(c)(7)) . Section 6241(5) is amended by striking sections 6234 and inserting section 6234 . The heading of the first part of subchapter C of chapter 63 is amended to read as follows: . The heading of the second part of subchapter C of chapter 63 is amended to read as follows: . The heading of the third part of subchapter C of chapter 63 is amended to read as follows: . The heading of the fourth part of subchapter C of chapter 63 is amended to read as follows: .