Page 208 - The TEFRA Partnership Audit Rules Repeal:

ALI CLE Live Video Webcast / “The TEFRA Partnership Audit Rules Repeal: Partnership and Partner Impacts” June 7, 2016, Jerald David August and Terence Floyd Cuff
 Notice of Final Partnership Adjustment.119 Upon the mailing of the notice of the final partnership adjustment to the partnership, a 90- day period starts to run during which the partnership may seek judicial review of the partnership adjustment(s) for the reviewed year [the year under audit], including the determination of the imputed underpayment. 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. The notice of the final partnership adjustment has a second consequence. It begins the 45-day period during which the partnership may elect the “push-out” procedures under Section 6226(b) under the alternative payment procedures. Additional notices of adjustment or assessments of tax against the partnership with respect to the partnership taxable year that is the subject of the notice of final partnership adjustment are prohibited during the period in which judicial review may be filed by the partnership or during which a judicial proceeding is pending unless there is a showing of fraud, malfeasance, or misrepresentation of a material fact.120
 Internal Revenue Service Rescission of Notice Previously Issued. Under Section 6231(c), any notice of partnership adjustment may be rescinded by the Internal Revenue Service provided the partnership consents. Where a notice is rescinded, it is treated as null and void and does not confer a right to judicial review and does not bar the issuance of further notices.
b. Administrative Adjustment Request.
A partnership may make an administrative adjustment request. A partnership may file a request for an administrative adjustment in the amount of one or more items of income, gain, loss, deduction, or credit of the partnership.121
119 I.R.C. § 6231(a)(3).
120 I.R.C. § 6231(b).
121 I.R.C. § 6227. See also GENERAL EXPLANATION OF TAX LEGISLATION ENACTED IN 2015
(JCS-1-16, March 2016) providing, inter alia, guidance concerning administrative adjustment requests filed by the partnership.
© Terence Floyd Cuff and Jerald David August, 2016
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