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partnership return, it must notify the individual partners of the
adjustment by issuing an FPAA. Sec. 6223(a). The TMP has ninety
days after the Commissioner mails an FPAA to petition for its
readjustment.17
The specific TEFRA provision at issue in this case is
section 6229, which states:
SEC. 6229. PERIOD OF LIMITATIONS FOR MAKING ASSESSMENTS.
(a) General Rule.--Except as otherwise provided in
this section, the period for assessing any tax imposed
by subtitle A with respect to any person which is
attributable to any partnership item (or affected item)
for a partnership taxable year shall not expire before
the date which is 3 years after* * *
(1) the date on which the partnership return
for such taxable year was filed * * *.
* * * * * * *
(d) Suspension When Secretary Makes Administrative
Adjustment.--If notice of a final partnership
administrative adjustment with respect to any taxable
year is mailed to the tax matters partner, the running
of the period specified in subsection (a) * * * shall
be suspended--
(1) for the period during which an
action may be brought under section 6226
(and, if a petition is filed under section
6226 with respect to such administrative
adjustment, until the decision of the court
becomes final), and
(2) for 1 year thereafter.
17 The TMP can seek readjustment in either the Tax Court,
the Court of Federal Claims, or a U.S. District Court. Sec.
6226(a).
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Last modified: November 10, 2007