Page 35 - The TEFRA Partnership Audit Rules Repeal:
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Budget Act: Partnerships in Bankruptcy
Special rules apply if a partnership is in bankruptcy under Title 11 of the United States Code (the "Bankruptcy Code").
• The statute of limitations on making an adjustment, assessment or collection is suspended during the period that the IRS is prohibited under the Bankruptcy Code from making the adjustment, assessment or collection, and
− For adjustments and assessments, 60 days thereafter, and − For collections, 6 months thereafter.
Section 6241(6)(A)(Budget Act)
• The period for which the partnership can file a petition for readjustment is suspended during the period that the partnership is prohibited under the Bankruptcy Code from filing such petition and for 60 days thereafter. Section 6241(6)(B)(Budget Act).
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Coming changes to IRS Audits of partnerships 26
