Page 32 - The TEFRA Partnership Audit Rules Repeal:
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Section 6234: Judicial Review of the FPA
• Within 90 days after the date on which the FPA is mailed with respect to any partnership taxable year, the partnership may file a petition for readjustment for such taxable year with:
− The Tax Court,
− The district court for the district in which the partnership's principal business
is located, or
− The Claims Court.
• Deposit requirement for district court and Claims Court
− The partnership is required to deposit with the IRS, on or before the filing of the petition, the amount of the imputed underpayment (as of the date of filing) as if the adjustment was made as provided in the FPA.
• Court has jurisdiction “to determine all items of income, gain, loss, deduction, or credit of the partnership ... the proper allocation of such items among the partners, and the applicability of any penalty.
©2016 Sutherland Asbill & Brennan LLP
Coming changes to IRS Audits of partnerships 23
