§6234 — Judicial review of partnership adjustment
7 cases·1 distinguished·3 overruled·3 cited
Statute Text — 26 U.S.C. §6234
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—
the Tax Court,
the district court of the United States for the district in which the partnership’s principal place of business is located, or
the Court of Federal Claims.
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.
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).
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.
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.
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.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.6234-1 Judicial review of partnership adjustment
- Treas. Reg. §Treas. Reg. §301.6234-1(a) In general.
- Treas. Reg. §Treas. Reg. §301.6234-1(b) Jurisdictional requirement for bringing action in district court or Court of Federal Claims.
- Treas. Reg. §Treas. Reg. §301.6234-1(c) Treatment of deposit as payment of tax.
- Treas. Reg. §Treas. Reg. §301.6234-1(d) Effect of decision dismissing action.
- Treas. Reg. §Treas. Reg. §301.6234-1(e) Amount deposited may be applied against assessment.
- Treas. Reg. §Treas. Reg. §301.6234-1(f) Applicability date—(1) In general.
7 Citing Cases
6231(a)(6) defines the term "computational adjustment" to mean "the change in the tax liability ofa partner which properly reflects the treatment under * * * [the TEFRA partnership rules] ofa partnership (continued...) -28- [*28] Congress enacted section 6234 to "overrule[]" this Court's decision in Munro v.
6231(a)(6) defines the term "computational adjustment" to mean "the change in the tax liability ofa partner which properly reflects the treatment under * * * [the TEFRA partnership rules] ofa partnership (continued...) -28- [*28] Congress enacted section 6234 to "overrule[]" this Court's decision in Munro v.
But whether the Commissioner erred in upholding Nehrlich’s underlying tax liability may well hinge on whether the Commissioner chose 4 Congress added section 6234 to the Code in 1997.
ent of any tax attributable to such [partnership or affected] item."); (4) sec. 6228(a)(3)(C) ("the expiration of the period prescribed by section 6229 for making assessments of tax attributable to partnership items for such taxable year."); and (5) sec. 6234(g)(2) ("the period prescribed by section 6229 for assessing any tax under subtitle A which is attributable to any partnership item or affected item for the taxable year involved."). - 20 - necessity, refer to section 6501. The only change m
sment of any tax attributable to such [partnership or affected] item”); (4) sec. 6228(a)(3)(C) (“the expiration of the period prescribed by section 6229 for making assessments of tax attributable to partnership items for such taxable year”); and (5) sec. 6234(g)(2) ("the period prescribed by section 6229 for assessing any tax under subtitle A which is attributable to any partnership item or affected item for the taxable year involved”). A similar analysis disposes of petitioner’s identical argum