26 U.S. Code § 6233 - Extension to entities filing partnership returns, etc.
If a partnership return is filed by an entity for a taxable year but it is determined that the entity is not a partnership for such year, then, to the extent provided in regulations, the provisions of this subchapter are hereby extended in respect of such year to such entity and its items and to persons holding an interest in such entity.
If a partnership return is filed for any taxable year but it is determined that there is no entity for such taxable year, to the extent provided in regulations, rules similar to the rules of subsection (a) shall apply.
Pub. L. 114–74, title XI, § 1101(a), (c)(1), (g), Nov. 2, 2015, 129 Stat. 625, 633, 638, provided that, applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, this section is repealed and a new section 6233 is enacted to read as follows:
§ 6233. Interest and penalties
(a) Interest and penalties determined from reviewed year
(1) In general
Except to the extent provided in section 6226(c), in the case of a partnership adjustment for a reviewed year—
(A) interest shall be computed under paragraph (2), and
(B) the partnership shall be liable for any penalty, addition to tax, or additional amount as provided in paragraph (3).
(2) Determination of amount of interest
The interest computed under this paragraph with respect to any partnership adjustment is the interest which would be determined under chapter 67 for the period beginning on the day after the return due date for the reviewed year and ending on the return due date for the adjustment year (or, if earlier, the date payment of the imputed underpayment is made). Proper adjustments in the amount determined under the preceding sentence shall be made for adjustments required for partnership taxable years after the reviewed year and before the adjustment year by reason of such partnership adjustment.
Any penalty, addition to tax, or additional amount shall be determined at the partnership level as if such partnership had been an individual subject to tax under chapter 1 for the reviewed year and the imputed underpayment were an actual underpayment (or understatement) for such year.
(b) Interest and penalties with respect to adjustment year return
(1) In general
In the case of any failure to pay an imputed underpayment on the date prescribed therefor, the partnership shall be liable—
(A) for interest as determined under paragraph (2), and
(B) for any penalty, addition to tax, or additional amount as determined under paragraph (3).
Interest determined under this paragraph is the interest that would be determined by treating the imputed underpayment as an underpayment of tax imposed in the adjustment year.
Penalties, additions to tax, or additional amounts determined under this paragraph are the penalties, additions to tax, or additional amounts that would be determined—
(A) by applying section 6651(a)(2) to such failure to pay, and
(B) by treating the imputed underpayment as an underpayment of tax for purposes of part II of subchapter A of chapter 68.
1996—Subsec. (b). Pub. L. 104–188 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If for any taxable year—
“(1) an entity files a return as an S corporation but it is determined that the entity was not an S corporation for such year, or
“(2) a partnership return or S corporation return is filed but it is determined that there is no entity for such taxable year,
then, to the extent provided in regulations, rules similar to the rules of subsection (a) shall apply.”
Repeal applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of Pub. L. 114–74, set out as an Effective Date of 2015 Amendment note under section 6221 of this title.
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
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- Similar Rules in Certain Cases : 2011-01-07
- Similar Rules in Certain Cases : 2009-11-06
- Similar Rules in Certain Cases : 2009-08-14
- Similar Rules in Certain Cases : 2009-05-15
- Similar Rules in Certain Cases : 2009-03-27
- General Rule : 2005-04-08
- Religious and Apostolic Organizations : 2005-04-08
- Partnerships : 2005-04-08
- Return of Partnership Income : 2005-04-08
- Organizations Not Treated as a Partnership : 2005-04-08