26 U.S.C. § 6222 | Partner’s return must be consistent with partnership return

(a)

In general

A partner shall, on the partner’s return, treat any partnership-related item in a manner which is consistent with the treatment of such item on the partnership return.

(b)

Underpayment due to inconsistent treatment assessed as math error

Any underpayment of tax by a partner by reason of failing to comply with the requirements of subsection (a) shall be assessed and collected in the same manner as if such underpayment were on account of a mathematical or clerical error appearing on the partner’s return. Paragraph (2) of section 6213(b) shall not apply to any assessment of an underpayment referred to in the preceding sentence.

(c)

Exception for notification of inconsistent treatment

(1)

In general

In the case of any item referred to in subsection (a), if—

(A)

(i)

the partnership has filed a return but the partner’s treatment on the partner’s return is (or may be) inconsistent with the treatment of the item on the partnership return, or

(ii)

the partnership has not filed a return, and

(B)

the partner files with the Secretary a statement identifying the inconsistency,

subsections (a) and (b) shall not apply to such item.

(2)

Partner receiving incorrect information

A partner shall be treated as having complied with subparagraph (B) of paragraph (1) with respect to an item if the partner—

(A)

demonstrates to the satisfaction of the Secretary that the treatment of the item on the partner’s return is consistent with the treatment of the item on the statement furnished to the partner by the partnership, and

(B)

elects to have this paragraph apply with respect to that item.

(d)

Final decision on certain positions not binding on partnership

Any final decision with respect to an inconsistent position identified under subsection (c) in a proceeding to which the partnership is not a party shall not be binding on the partnership.

(e)

Addition to tax for failure to comply with section

For addition to tax in the case of a partner’s disregard of the requirements of this section, see part II of subchapter A of chapter 68.

Pub. L. 114–74, title XI, § 1101(c)(1)Nov. 2, 2015129 Stat. 626 Pub. L. 115–141, div. U, title II, § 201(c)(3)Mar. 23, 2018132 Stat. 1173(Added , , ; amended , , .)

Editorial Notes

Prior Provisions

Pub. L. 97–248, title IV, § 402(a)Sept. 3, 198296 Stat. 648 Pub. L. 99–514, title XV, § 1503(c)(1)Oct. 22, 1986100 Stat. 2743 Pub. L. 101–239, title VII, § 7721(c)(7)Dec. 19, 1989103 Stat. 2400 Pub. L. 114–74, title XI, § 1101(a)Nov. 2, 2015129 Stat. 625A prior section 6222, added , , ; amended , , ; , , , required partner’s return to be consistent with partnership return or Secretary to be notified of inconsistency, prior to repeal by , , .

Amendments

Pub. L. 115–1412018—Subsec. (a). amended subsec. (a) generally. Prior to amendment, text read as follows: “A partner shall, on the partner’s return, treat each item of income, gain, loss, deduction, or credit attributable to a partnership in a manner which is consistent with the treatment of such income, gain, loss, deduction, or credit on the partnership return.”

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–141 section 1101 of Pub. L. 114–74 section 207 of Pub. L. 115–141 section 6031 of this titleAmendment by effective as if included in , see , set out as a note under .

Effective Date

Dec. 31, 2017section 1101(g) of Pub. L. 114–74 section 6221 of this titleSection applicable to returns filed for partnership taxable years beginning after , with certain exceptions, see , set out as a note under .