Page 225 - 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
purported partnership representative may elect (at the time and in the manner prescribed by the Secretary) under new section 6226 to issue statements to the two taxpayers, which purported to hold partnership interests for the reviewed year [the year under audit]. To the extent of the adjustments, each of the two taxpayer’s tax may be increased for the taxpayer’s taxable year that includes the date of the statement. In this situation, the amount of the increase for each of them is amount by which the taxpayer’s tax would increase if the taxpayer’s share of the adjustment amounts were included for the taxpayer’s taxable year that includes the end of the reviewed year, plus the amount by which the tax would increase by reason of adjustment to tax attributes in years after that year of the taxpayer and before the year of the date of the statement.
l. Jurisdiction in Controversy.
A court with which a petition is filed (such as the Tax Court, a District Court, or the Court of Federal Claims) has jurisdiction to determine –
 all items of income, gain, loss, deduction, or credit of the partnership for the partnership taxable year to which the notice of final partnership adjustment relates,
 the proper allocation of the items among the partners, and the applicability of any penalty, addition to tax, or additional amount for which the partnership may be liable.
16. ASC 740-10, FIN 48 issues. a. In General.
FIN 48 (largely codified at ASC 740-10)134 officially interprets United States accounting rules concerning accounting for uncertainty income tax risks. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes.
FIN 48 applies to all entities that prepare GAAP financial statements. This includes business enterprises such as C corporations, RICs or REITs, not-
134 See FASB Interpretation No. 48, Accounting for Uncertainty in Income Tax Positions; FASB Statement No. 109, Accounting for Income Taxes. See generally, August “Understanding FIN 48: Accounting for Uncertainty in Income Taxes,” Business Entities (WG&L) (May/June 2008); August, “The Uncertain State of Uncertain Tax Positions,” Business Entities (WG&L) (May/June 2011).
© Terence Floyd Cuff and Jerald David August, 2016
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